Performance audit, historical societies

PERFORMANCE AUDIT
HISTORICAL SOCIETIES
Report to the Arizona Legislature
By the Auditor General
October 1995
Report # 95- 7
DOUGLAS R. NORTON, CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL
DEBRA K. DAVENPORT, CPA
DECUTI& UDITOIIC. ENEII& L
October 24, 1995
Members of the Arizona Legislature
The Honorable Fife Symington, Governor
Dr. Michael Weber, Executive Director
Arizona Historical Society
Mr. Richard Sims, Executive Director
Prescott Historical Society
Transmitted herewith is a report of the Auditor General, A Performance Audit of the
Historical Societies. This report is in response to a May 5, 1993, resolution of the Joint
Legislative Audit Committee. The performance audit was conducted as part of the
sunset review set forth in A. R. S. 9941- 2951 through 41- 2957.
The report addresses both the Arizona Historical Society ( AHS) and the Prescott
Historical Society ( PHs). Regarding AHS, we found that the Agency needs to improve
the care of its historical collections to ensure Arizona's history is preserved for future
generations. Further, the AHS Board needs to improve its oversight of the Agency
to ensure its mission is fulfilled. Our report also discusses the delay in opening the
new Papago Park Museum due to lack of fund- raising and disputes over control of
the museum. Regarding the Prescott Historical Society, we found an agency with a
fully accredited museum and no significant deficiencies. While we did note that the
Board needs improvement in a few areas, these deficiencies have not appeared to affect
the Agency's ability to fulfill its mission. Our recommendations for improvement are
included in the Sunset Factors.
My staff and I will be pleased to discuss or clarify items in the report.
This report will be released to the public on October 25, 1995.
Sincerely,
Do'u sg R. N orton
Auditor General
Enclosure
2910 NORTH 44TH STREET. SUITE 410 . PHOENIX, ARIZONA 85018 m ( 602) 553- 0333 1 FAX ( 602) 513- 0051
SUMMARY
The Office of the Auditor General has conducted a performance audit and sunset review
of the Historical Societies, pursuant to a May 5,1993, resolution of the Joint Legislative
Audit Committee. The audit encompassed the Arizona Historical Society ( AHS) and the
Prescott Historical Society ( PHs). This audit was conducted under the authority vested
in the Auditor General by Arizona Revised Statutes ( A. R. S.) § § 41- 2951 through 41- 2957.
Arizona Historical Society
The Arizona Historical Society's mission is " to collect, preserve, interpret and disseminate
the history of Arizona, the West and northern Mexico." To fulfill this mission, AHS cares
for a collection of books, records, photographs, and objects related to Arizona history.
For example, AHS has in its possession Wyatt Earp's shotgun and Geronimo's medicine
pouch. These collections are housed and displayed in AHS museums in Tucson, Tempe,
Flagstaff, and Yuma.
The Agency is governed by a 30- member board, charged with overseeing the Agency and
its 60- member staff. The Board has also organized chapters to advise it on museum
programs and exhibits, as well as to conduct fund- raising. Our review of the Arizona
Historical Society resulted in two findings covering the need to improve museum
collection management and the need for an effective governing board.
AHS Needs to Improve
Museum Collection Management
( See pages 5 through 11)
AHS needs to make fundamental improvements in the care of museum collections, which
are its most valuable assets. In the 1980s, reviews of the AHS museums conducted by
museum consultants cited serious concerns about the level of care AHS provided its
collections and the deterioration of artifacts that might result. Although the reviews gave
AHS direction for enhancing collections care, progress in implementing these recom-mendations
has been slow. In fact, our consultant who reviewed the collections
determined that " AHS falls considerably short of professional expectations for quality
collection management and care." For example, some collections items are still stored in
an unfinished attic in one museum, although this had been noted as a problem in 1989.
As a result, this collection is vulnerable to roof leaks, poor ventilation, and daily weather
changes.
Several factors have compromised AHS' ability to make improvements, including limited
funding and inadequate staffing. In addition, routine care of the collection is, at times,
Several factors have compromised AHS' ability to make improvements, including limited
funding and inadequate staffing. In addition, routine care of the collection is, at times,
overshadowed by the more visible activities such as opening the new Papago Park
Museum or preparing new exhibits. To ensure preservation of Arizona's history for future
generations, AHS needs to increase the resources available for the care of its collections.
Nearly $ 1 million is needed, $ 900,000 of which is needed for properly equipping the
museums and upgrading environmental control systems. Another $ 100,000 is needed to
hire three staff to care for the collections. To accomplish this, AHS should designate a
development officer position that is devoted to raising funds for all its programs,
especially collection care enhancements.
AHS Board Needs to Improve as
Governing Body of the Agency
( See pages 13 through 19)
The AHS Board needs to improve its governance of the Agency, as it has not fully
addressed some key responsibilities. As the governing body, the Board must oversee
museum operations and fund- raising efforts to ensure the Agency fulfills its mission.
However, the Board has not adequately fulfilled these responsibilities. For example, it
has yet to complete a long- range plan for the Agency. As a result, the opening of a new
museum has been delayed and collections care overlooked. Also contributing to the
problems is the Board's failure to properly define and ensure affiliated groups adequately
fulfill their roles. As a result, some members of the Board's affiliated groups have
attempted to overstep their advisory and fund- raising roles and exert control over AHS'
operations. To improve, the Board must make fundamental changes, such as completing
development of policies and long- range plans, reassessing its relationship with its
affiliated groups, and providing for diversity and State representation on the Board.
Prescott Historical Society
( See pages 27 through 32)
The Prescott Historical Society is responsible for preserving, maintaining, and perpetuating
the Sharlot Hall Museum, the gubernatorial mansion, and the historical collections located
therein. PHs is governed by a 15- member board that oversees the Agency operations and
its 16 staff members. Our review of the Museum facilities and functions found no
significant problems. In fact, the Museum was fully accredited in 1992 by the American
Association of Museums. In evaluating the Museum for accreditation, a review team found
the collection storage areas to be in " immaculate condition" and the exhibits areas " well
thought out." Although we did note that the Board needs improvement in a few areas,
these deficiencies did not appear to significantly impact the ability of the Agency to fulfill
its mission. These areas for improvement are addressed in the Sunset Factors for the
Agency.
Table of Contents
Paqe
Arizona Historical Societv
Introduction and Background . . . . . . . . . . . . . . . . . . . . . . . . 1
Finding I: AHS Needs to lmprove
Museum Collection Management . . . . . . . . . . . . . . . . . . . 5
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
AHS Has Been Slow in Implementing
Previous Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Resources for Collection
Management Lacking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
More Centralized Development
and Resources Needed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Finding II: AHS Board Needs to lmprove
as Governing Body of the Agency . . . . . . . . . . . . . . . . . 13
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Board Has Not Provided
Sufficient Oversight of AHS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Board Needs to Address
Several Factors to
Improve Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Table of Contents
Arizona Historical Societv ( con't)
Other Pertinent Information . . . . . . . . . . . . . . . . . . . . . . . . 21
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Museum Opening Delayed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Current Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Sunset Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Agency Response
Appendix A
Prescott Historical Societv
Introduction and Background . . . . . . . . . . . . . . . . . . . . . . 27
SunsetFactors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Agency Response
Arizona Historical Society
INTRODUCTION AND BACKGROUND
The Office of the Auditor General has conducted a performance audit and sunset review
of the Arizona Historical Society, pursuant to a May 5, 1993, resolution of the Joint
Legislative Audit Committee. This audit was conducted under the authority vested in
the Auditor General by A. R. S. # 41- 2951 through 41- 2957.
History and Purpose
The Arizona Historical Society ( AHS) predates statehood. In 1884, at a Tucson hotel,
a group of citizens formed the Society of Arizona Pioneers with the intent of preserving
the history of their struggle to claim and settle the Arizona Territory. In 1897, the
territorial legislature recognized and began funding the Society. In 1913, AHS became
a state agency. The Society's purpose has remained consistent, though expanded, as
exemplified by its mission statement:
" To collect, preserve, interpret and disseminate the history of Arizona, the West, and
northern Mexico. "
AHS originally operated only one museum in Tucson. Then, in the 1970s and 1980s, three
local historical societies joined AHS, giving the Agency a total of four museums that
cover various geographical areas of the State: Yuma, Flagstaff, Tucson, and metropolitan
Phoenix. Each museum is part of a regional division, and shares the same general
mission of collecting, preserving, interpreting, and educating the public on Arizona
history, with each division concentrating on the history that is unique to that region.
Three of the Agency's four primary museums served approximately 108,000 visitors
during fiscal year 1995.( 11 In addition, as mandated by statute, AHS certifies local
historical organizations that work to preserve Arizona history around the State.
Specifically, the Board certifies that these nonprofit organizations have functioning
programs of historical value thereby allowing it to contract with these certified organiza-tions
to perform services for the benefit of the State.
( I) The fourth museum, Papago Park, located in Tempe, is scheduled to open to the public in January
1996.
Organizational Structure
and Staffing
A. R. S. 941- 821 establishes a Board of Directors to direct and oversee the Agency. This
Board, comprised of 30 members representing all Arizona counties, meets on a monthly
basis to conduct Society business. The Board members are elected by the Society's
membership ( a total of 3,500 members). The Board has organized four chapters to advise
it on museum programs and exhibits, as well as conduct fund- raising. The presidents
of these chapters, as well as some other chapter members, also serve on the Board.
To carry out its mission, the Board appoints an Executive Director and employs 60 Full-
Time Equivalent staff ( FTEs). The staff are organized into seven divisions, including four
geographic divisions each operating its own museums:
The Central Arizona Division will operate the Papago Park Museum in Tempe with
10 staff. It is responsible for preparing the museum for its opening, in addition to
caring for the library, archives, and the almost 30,000 artifacts the Museum holds.
The Southern Arizona Division operates three museums in Tucson with 22.5 staff.
The staff work in maintaining the library, archives, and photo collections, caring for
the 27,000- item collection and providing education programs. The main Tucson
museum is the only museum operated by AHS that is fully accredited by the
American Association of Museums, a nationally recognized organization.
w The Northern Arizona Division operates the Pioneer Museum in Flagstaff with 3 staff.
The Division maintains the 12,000- artifact collection, and archival material and photos,
and provides education programs.
w The Rio Colorado Division is responsible for the Century House Museum in Yuma
utilizing 3.5 staff. The staff maintain a collection of 2,000 artifacts, archival material,
and 12,000 photos.
w The Exhibits Division, consisting of 9 staff, assists the museums in the design and
construction of exhibits. Currently, the staff are concentrating on the design and
construction of the exhibits for the new Papago Park Museum.
w The Publications Division publishes a quarterly journal and books on Arizona history
with 3 staff.
The Administrative Division of 8 staff provides support for the entire society in areas
such as accounting, budgeting, contracting, and personnel.
AHS also utilizes the services of volunteers to assist in a variety of activities, such as
museum tours, artifacts cataloging, and gift shop operations. During fiscal year 1994- 95,
these individuals volunteered over 40,000 hours of service to the Agency.
Budget
In fiscal year 1994- 95 AHS' $ 4.9 million total budget was comprised of both state and
private funding. State appropriations accounted for $ 3.9 million or 80 percent of the
budget and are used to pay the cost of operating the Society's buildings and for
personnel. The remainder of AHS' budget is obtained privately through donations, grants,
and other private sources, such as membership dues and gift shop revenues. These
private monies are raised primarily to fund AHS' programs and exhibits and about two-thirds
of these monies are received from donors or grantors who restrict the funds to
be used only for specific purposes. For example, a corporate donor provided AHS the
funding to process a particular photo collection. The remaining private monies are used
to fund 11.5 staff and a portion of the Agency's operating expenses such as utilities,
professional services, postage, printing and photography, and repair and maintenance
expenses.
Scope and Methodology
This audit focused primarily on AHS' ability to fulfill its mission to collect and preserve
our State's history, and the Board's governing structure. To assess AHS' performance
in meeting its mission to collect and preserve history, we contracted with two
independent consultants with expertise in this area.(') One consultant evaluated the care
of the Agency's Tucson and Tempe library and archives containing historic books and
records. This included a followup to a 1989 evaluation of Tucson's facilities. The second
consultant visited all four museum divisions to evaluate collections storage conditions
and to report on progress the museums have made since they were last evaluated in
the mid to late 1980s. These previous evaluations include a general assessment by the
American Association of Museums ( AAM) of the Yuma museum in 1983 and an AAM
assessment that dealt specifically with the collection in 1986. In Flagstaff, an AAM
general museum assessment was conducted in 1988. In addition, a building assessment
was conducted by Janus Associates, Inc. in 1989 using the Secretary of the Interior's
Standards for Historic Preservation Projects. Also in 1989, an assessment of the Tucson
museum was facilitated by the Institute of Museum Services.
In conjunction with our consultants' review, we visited each museum, contacted other
state historical societies and national associations, and reviewed literature on collections
management.
Appendix A ( see page a- i) provides detail on the two consultants' backgrounds and areas of expertise.
Copies of the consultants' reports are available for review at the Office of the Auditor General.
3
To aid in our study of the Agency's governing structure, we conducted a literature search
to identify books, pamphlets, and articles focusing on nonprofit or government boards
of directors. Our work also included an extensive review of Board minutes, observation
of Board meetings, and a survey of chapter members, as well as a comprehensive survey
of over 40 other state historical societies. In addition, we reviewed a study conducted
by the Governor's Office of Excellence in Government in 1994, which also included
information and recommendations regarding AHS' governing structure.
Our audit report of AHS presents findings and recommendations in two areas:
The need for AHS to improve management of its collections; and
The need for the Board to improve its effectiveness.
In addition to these areas, we present a section of other pertinent information that
discusses the current status of AHS' newest museum, Papago Park Museum.
This audit was conducted in accordance with government auditing standards.
The Auditor General and staff express appreciation to the President of the State Board,
Board members, and the management and staff of the Arizona Historical Society for
their cooperation and assistance throughout the audit.
FINDING I
AHS NEEDS TO IMPROVE MUSEUM
COLLECTION MANAGEMENT
" Historical Collections ... are the bedrock upon which the practice of history rests."
- American Association for State and Local History
AHS needs to make fundamental improvements in the care of its museum collections.
Although previous reviews provided AHS direction for enhancing its collection
management, progress in implementing those recommendations has been slow. Several
factors, including limited funding and staffing, and other competing needs, account for
this slow progress. To ensure preservation of its collections, AHS should increase the
resources devoted to basic museum functions.
Background
The preservation of historical items is a challenging but necessary component of museum
management. Artifacts, photographs, and archival material are prone to the natural
processes of aging and deterioration. Environmental factors such as humidity,
temperature, and light levels all influence the rate of deterioration. Museums are charged
with the responsibility of taking steps to slow the deterioration process in order to
increase the longevity of the items in their care. By monitoring and controlling the
environment and by providing proper storage areas, museums can effectively slow
deterioration, thereby maintaining the collections for future generations. AHS' collections
include artifacts, books, maps, photographs, and archival material such as old news-papers
and business records. Items are stored at all four museums and range from the
spectacular, such as Geronimo's medicine pouch and Wyatt Earp's shotgun; to the rare,
such as old photographs; to the more common, such as 19th- century furniture.
Because deterioration is a subtle and somewhat less visible process, we retained the
consulting services of two individuals, an artifact conservation expert and a library and
archives expert, to assist us in examining preservation efforts. The consultants examined
those factors that have the greatest impact on a museum's ability to effectively preserve
its collection: environmental factors, storage and exhibit conditions, and the number of
staff available to properly care for the collection. AHS had initiated assessments of its
museums in the 1980s that allowed us to conduct a " then and now" study to determine
whether conditions have improved.
AHS Has Been Slow in
Implementing Previous
Recommendations
AHS has made slow progress in improving its overall collection management. Despite
earlier studies that identified shortcomings and proposed solutions, AHS has neglected
to make improvements in some areas of collection care.
Earlier studies found inadequate conditions - Assessments of AHS museums conducted
during the 1980s found a number of deficiencies that had existed prior even to AHS
acquiring the museums and their collections. AHS assumed responsibility for the local
Yuma County Historical Society in 1982 and the local Flagstaff Historical Society in 1984,
both of which had suffered severe financial cutbacks. The previously noted assessments
initiated by AHS to determine the extent of existing problems found a number of long-standing
deficiencies in the areas of environmental control, storage methods, and exhibit
procedures. At the same time, AHS received a grant that funded an assessment of the
Tucson museum. Specifically, the assessments noted:
Environmental Controls - Controls designed to protect museum collections from
extreme temperature changes and other environmental conditions were inadequate
in each museum. For example, the Flagstaff report noted that parts of the collection
were stored in environments that were prone to extreme temperature changes and
subject to large quantities of dust. In Tucson the heating and cooling system did not
work properly, resulting in high temperatures which tend to accelerate deterioration
of some materials.
Storage Methods - Storage methods necessary to protect the artifacts were also
inadequate at all three museums. For example, the Yuma report found one storage
area lacked any air circulation and the main storage area subjected the collections
to high light levels which, if high enough, could induce fading of the materials. The
Tucson report noted that costumes and textiles were being damaged due to the
manner in which they were folded and placed on narrow shelves or into boxes.
Exhibit Procedures - Inadequate exhibit procedures were also noted, contributing
to deterioration of certain items. For example, the Flagstaff report noted that " many
objects on exhibit are exposed to too much light for too long a time," which can cause
deterioration and fading in many materials. Additionally, in Tucson, artifacts on
exhibit were susceptible to contact with abrasive surfaces, which can cause scratching.
Limited improvements have occurred - Our consultant found that while some
improvements have been made since the previous reviews, all three museums continue
to need improvements. For example, our library and archives consultant found that the
Tucson library department had completed or made significant progress on almost every
recommendation made in the previous survey. While the consultant commended the
library department for its commitment and initiative she found that some areas still need
work and others deserve ongoing attention. More serious concerns were identified by
our artifacts consultant, who reviewed the overall condition of all the museums. In fact,
she determined that " AHS falls considerably short of professional expectations for quality
collection management and care." She further described conditions at the museums as
those that are to be expected from local museums, not from a state- supported agency,
and concluded that given present industry practices, AHS is not adequately preserving
its collections.
Specifically, lack of progress was noted in the following areas:
I Environmental Controls - Problems regarding environmental controls over
temperature, humidity, and light were found in all three of the museums. For
example, the Flagstaff museum is still unable to monitor environmental conditions
as it lacks the necessary tools to monitor humidity and temperature. On- site testing
by the consultant found the humidity to be unacceptably low, which is a major factor
in the deterioration of organic materials such as leather, wood, textiles, and paper.
In addition, while the museum in Yuma has purchased environmental monitoring
equipment, staff have not been able to obtain accurate readings. Further, our
consultant found the temperature to be unacceptable for collections storage. For
example, temperatures as high as 86' F were recorded in collections areas, though
the recommended level is only 65' to 70' F. This is significant when just a 10- degree
rise in temperature doubles the rate of deterioration in many materials. Finally,
although the Tucson museum has addressed problems with its heating and cooling
system, our library and archives consultant found that seasonal rises in relative
humidity are endangering the collections. Moreover, our artifacts consultant found
that the museum had exceeded the appropriate levels of moisture in the air, thereby
increasing the potential for deterioration.
I Storage Methods - Storage problems remain an issue at each museum. For example,
while some of the most vulnerable materials have been removed from the unfinished
attic in the Flagstaff museum, the majority of items continue to be stored there,
leaving the collection exposed to roof leaks, poor ventilation, and daily weather
changes. Additionally, the Yuma museum lacks adequate storage area. As a result,
items such as Native American baskets of considerable value must be stacked for
storage, risking distortion of their shapes. The Tucson museum has improved storage
capabilities by purchasing some space- efficient museum cabinets. However, the
storage area is equipped to handle only one- half to two- thirds of the artifacts
currently housed there. As a result of overcrowding, both the Museum's own items
as well as borrowed items have been damaged.
I Exhibit Procedures - Exhibit methods in all three museums are outdated and
potentially harmful to the artifacts. All of the museums use older exhibit cases
constructed of less than ideal materials ( wood, paint, glue) which produce gases that
are harmful to many artifacts, as they accelerate the aging process. In fact, some
Tucson exhibits have been on display for 20 years using such outdated materials and
methods. For example, guns were mounted with unpadded metal brackets, which
could scrape or corrode them. In addition, light levels in some Yuma museum exhibit
cases are three to ten times greater than recommended for light- sensitive materials
such as textiles and paper objects, leading to premature fading and color distortion.
Resources for Collection
Management Lacking
Lack of resources appears to be the primary factor contributing to the slow rate of
progress. Limited funding and staffing have been available to provide the proper care
of collections due in large part to the competing needs of more visible projects.
Limitedfunding available for improvements - Funding for museum enhancements has
been limited to monies received from grants and other private sources. Although AHS
receives almost 80 percent of its operating monies from legislative appropriations, nearly
all of that amount is directed toward basic expenses such as salaries, utilities, and capital
expenditures. From the remaining appropriated funds, only a minimal amount is
available for collection storage upgrades and other preservation projects.( 1) Thus, AHS'
ability to affect improvements has been limited. For example, according to AHS officials,
the Tucson museum received only $ 2,100 in fiscal year 1994- 95 for collection storage
upgrades, while Flagstaff received no monies at all.
To meet additional needs, each museum depends on fund- raising and grant- writing
activities. However, AHS officials report limited success in raising funds to improve the
care of the collections and, as a result, many needs remain unmet. According to AHS
officials, potential donors are more willing to sponsor visible projects rather than the
" behind the scenes" expenses of routine collection care. For example, in fiscal year 1994-
95, the Yuma museum received approximately $ 1,500 from private sources for collections
storage upgrades, Flagstaff received approximately $ 6,500, and Tucson received about
$ 4,800 for its collection needs. However, these amounts are minimal when compared
to the need for essential preservation items such as expensive storage and environmental
equipment. For example, the 1989 Flagstaff assessment reported a need for approximately
$ 8,000 worth of storage units. Likewise, the 1989 Tucson assessment recommended that
the Museum's long- range plan include replacing old, inefficient storage cabinets, which
the staff estimate could cost up to $ 100,000.
Inadequute staffzng levels - In addition, museums lack the necessary staff to carry out
their responsibilities, according to the consultant's assessments. While the collection has
grown, doubling over the last 20 years, staffing levels have remained constant and in
AHS has made requests for capital improvements and risk management grants to improve its facilities
and collections storage capability. For example, AHS has requested $ 20,000 for fiscal year 1996- 97 to
repair a roof leak over a collections storage area at the Yuma museum.
some instances have decreased. Our artifacts consultant specifically commented on the
inadequacy of staffing at each museum:
I Yuma - Yuma lacks the staff to effect the changes necessary to significantly upgrade
the quality of collection care and management. The 1986 assessment had noted that
" job descriptions and lists of activities place collection care and documentation in
the middle or at the end of the lists." This inattention continues even today as the
curator can spend only 15 percent of her time working directly with collection
activities, due to her many other responsibilities. In addition, while the earlier
assessment recommended adding a staff position, no new staff have been added over
the last ten years. In fact, the loss of an almost full- time volunteer has effectively
reduced the staff size.
I Flagstaff - The consultant found the Flagstaff museum to be severely understaffed.
The two professional staff must share many tasks such as preparing and installing
exhibits, organizing the annual festival, and conducting public programs, leaving little
time for working with the less- visible collection. For example, little time has been
devoted to formally documenting and processing some items which were donated
to the Museum in the 1980s. Moreover, the Museum is dependent on the efforts of
dedicated volunteers, whose future time commitments should not be counted upon.
Without these volunteers, routine preservation needs, such as the cleaning and oiling
of saddles on exhibit, may not be attended to.
Tucson - The consultant found the present number of collections staff to be " clearly
inadequate to cope with the extensive and growing collections management and care
needs." Though the size of the collection continues to grow, two positions have been
transferred away from this museum in the last seven years. As a result, the Museum
has been unable to complete some routine tasks such as documenting and registering
new acquisitions. Moreover, though the Museum aspires to complete yearly
inventories, it has been unable to conduct an inventory in four years.
Competing needs - Finally, the consultant expressed concern that projects visible to the
public have received much of AHS' attention. For example, during the past several years
AHS has been focused on building, funding, and preparing the new Papago Park
Museum, which is expected to open in 1996. The consultant expressed concern that the
Museum's construction and operations have already drained ( and may continue to drain)
AHS' limited resources to the detriment of the three other branch museums. For example,
though the exhibits in all museums need renovation, the majority of exhibits personnel
are working on Papago Park. Additionally, employees in Tucson had been told that the
priority of the Board was to open the Papago Park Museum and that for the foreseeable
future that is where new appropriated dollars would be utilized.
More Centralized Development
and Resources Needed
A more concerted effort is needed to obtain the funds and resources necessary to better
preserve Arizona's history. Specifically, AHS should establish a development officer
position to facilitate fund- raising activities. Once the funds are raised, at least a portion
of them should be earmarked for preservation needs.
Development oficer needed - A first step in " jump starting" fund- raising efforts and
ensuring the adequate preservation of Arizona's history is the establishment of a
development officer position. Currently, fund- raising and grant writing depends largely
on the initiative of individual staff in the various divisions. However, other states'
experience suggests that fund- raising through a development officer could benefit AHS.
As has been done in other states, creation of a fund development officer should be
viewed as an investment rather than an expense. AHS will need to invest at least $ 96,000
to fund the position for two years, after which time the position should become self-supporting
through private donations.(') Other states surveyed all benefited from having
development offices. For example, the 2.5 FTEs working in the development office of
the New Jersey Historical Society raised $ 700,000 in one year. Even more successful, the
Colorado development office raised $ 1.2 million in fiscal year 1994. On a smaller scale,
the 1.5 FTEs in the Rhode Island development office raised $ 150,000. Locally, the Phoenix
Art Museum, which has a six- person development office, recently reported that it raised
$ 14 million in private funds toward its capital campaign over the last several years.
The Office of Excellence in Government also recommended the establishment of a
development position, indicating that it would increase effectiveness by coordinating
activities, planning for fund- raising, and developing volunteer fund- raising leadership.
More resources needed - Once effective fund- raising efforts are underway, AHS should
direct sufficient resources to enhance preservation of the collection. As recommended
by our consultant, AHS should provide funding for additional staff and equipment
needed to carry out preservation functions. The consultant found needs in the following
areas:
Staffing Needs - Each museum needs an additional staff member to focus on
collections care. A conservative estimate of the annual cost for such positions would
be about $ 30,000 each, based on current salary and employee- related expenditures
( ERE) levels, for a total of approximately $ 90,000.
( I' We estimate $ 96,000 will be needed to fund the position for two years based on the median salaries
for development positions in organizations with comparable budgets, as reported in the Chronicle of
Philanthropy.
Equipment Needs - Each museum is in need of some degree of environmental
monitoring and storage equipment. While the consultant could not provide a specific
estimate for each item needed, she estimated the total cost for properly equipping
the museums to be approximately $ 640,000. Further, the Tucson museum needs to
continue its efforts to upgrade its environmental control system, which could cost
an additional $ 260,000, according to AHS staff. AHS staff should work to specifically
identify equipment and storage upgrade costs and present those estimates to the
Board for review.
RECOMMENDATIONS
1. AHS should fund a development officer position to enable it to improve its fund-raising
and grant- writing capabilities. To initially fund this position, AHS will need
to consider various funding sources, which include requesting legislative appropria-tions,
redirecting current resources, or exploring private sources.
2. AHS should develop conservation priorities and make a firm commitment to its
collection by earmarking a portion of raised funds for preservation needs, including
staff and equipment.
FINDING II
AHS BOARD NEEDS TO IMPROVE
AS GOVERNING BODY OF THE AGENCY
The AHS Board needs to make improvements in providing governance for the Agency.
Failing to adequately oversee museum operations and fund- raising, the Board contributed
to the delay in opening a new museum and the lack of progress in collections care. To
improve, the Board needs to attend to basic governing board activities, restructure
relationships with affiliated groups, and provide for sufficient diversity on the Board.
Background
AHS is governed by a 30- member Board as established by A. R. S. 541- 821. As with any
typical governing board, the Board is primarily responsible for providing a policy frame-work
for the executive director and his staff and providing overall direction for the
Agency. AHS has four chapter organizations that represent regional historical interests.
The chapters are intended to serve in an advisory capacity to the Board and AHS
division staff. Although the Board is ultimately responsible for raising funds for the
museums' programs and exhibits, it has delegated this activity to the chapters.
Board Has Not Provided Sufficient
Oversight of AHS
Until recently, the Board has lagged in fulfilling its primary responsibilities in several
key areas. First, oversight of fund- raising for the Agency's programs and exhibits has
been, for the most part, weak. Second, inadequate oversight of museum operations has
led to the neglect of routine care of collections agencywide. Finally, the Board has not
provided adequate guidance for its chapter groups; therefore, the chapters are not being
utilized in a way that would fully benefit AHS.
Insufficient oversight of find raising - Although it is a major responsibility, the Board
has not provided for oversight of fund- raising activities. While a significant portion of
AHS operations ( programs, exhibits, collections care, etc.) must be funded by private
monies, the Board does not identify fund- raising needs overall. As noted in Finding I
( see page 5 through ll), the Agency has a need for resources to enhance collections
management; however, it appears the Board has not adequately planned fund- raising
efforts to meet these needs. Rather, funding for improvements has been requested from
the Legislature or obtained by agency staff in a piecemeal fashion addressing only a
small portion of the overall need. Moreover, the Board's difficulties with its former fund-raising
arm, the Arizona Historical Society Foundation, further exemplify its failure to
adequately plan and oversee fund- raising activities. Although deemed a top priority,
the Board has been unable to effectively guide the timely opening of the new Papago
Park Museum. Because state- appropriated monies were dedicated for building operations,
AHS needed to raise money through private donations to develop the exhibits necessary
to open the Museum. In order to carry out this fund- raising task, the Board utilized the
Foundation, a private nonprofit fund- raising organization.
However, AHS was unable to work effectively with its former Foundation to raise the
needed funds. Although the Board had ultimate responsibility for the museum and its
exhibits, some Foundation members wanted to determine the museum's themes and
exhibits. As a result, friction occurred between AHS and the Foundation. According to
information from Foundation officials, the Board did not provide them with needed input
or guidance in planning the fund- raising campaign for Papago Park Museum. At the
same time, AHS officials contend that the Board tried for at least six months to get
financial information from the Foundation, to no avail. The inability of the Foundation
and the Board to work together resulted in " institutional gridlock." Finally, the Board
took control of the situation by giving the Foundation an ultimatum to either turn over
financial reports or risk disassociation. When the Board did not receive the requested
information, it ended its relationship with the Foundation in February 1994. However,
by that time, a one and a- half- year delay toward the opening of the Museum had
occurred. Since the Foundation raised only an estimated $ 2.6 million during its five- year
involvement in the Papago Park Museum project, the Board was left to contract with
a private fund- raiser in February 1995 to raise the remaining funds needed. Since that
time, the contractor has obtained almost $ 3 million in donations and pledges for the
exhibits. ( See Other Pertinent Information, pages 21 through 22, for additional
information regarding the completion of the Papago Park Museum.)
Moreover, the Board has not successfully used its chapter organizations for one of its
primary purposes - fund- raising. As noted earlier, each chapter has the delegated
responsibility to raise funds for its region. However, we found that very little fund-raising
has occurred at this level. In fact, one chapter has raised no funds during the
past several years. AHS officials and chapter members indicated that chapters do not
aggressively raise funds because they feel they have no control over how funds are spent.
Because the chapters are not fulfilling this responsibility, AHS staff are often left to
identify their own private funding sources for programs and exhibits. While it is
necessary for some staff to contribute to fund- raising activities, it appears staff spend
a considerable amount of time on these tasks, rather than performing activities specific
to their particular position. According to a report by the Governor's Office for Excellence
in Government ( OEG), some staff have spent as much as 40 percent of their time on
fund development activities, such as coordinating fund- raising events.
Insufficient oversight of museums - The Board has not provided sufficient oversight
of AHS' four regional museums, resulting in significant problems with the care of its
collections. According to statute, the Board is the trustee of AHS' collections and is,
therefore, responsible for ensuring their proper care. However, as noted in Finding I,
our review of AHS' collections found that care of these collections fell considerably short
of professional standards for a statewide historical organization. In addition, while many
of the deficiencies noted by our artifacts consultant had been identified in previous
reviews conducted in the 1980s, little progress has been made to address these areas.
While the Board has established a collections committee, responsible for general oversight
of all collections, it appears there has been insufficient planning for the overall
improvement of collections care. Rather, the committee's short- and long- term goals focus
on updating the policy manual and implementing a statewide computer system for
collections information.
Guidance for chapters is inadequate - Finally, the Board has provided little guidance
to its chapter groups regarding their advisory role. We surveyed 18 chapter members
to ascertain their perception of what functions they were to assist the Board in, and
found that only 6 of the 18 appeared to understand their role.'') Five of the surveyed
chapter members believed they should have more influence and control over programs
and exhibits and some even felt that it was their responsibility to run the museum. Some
chapter members also seem to believe that agency staff are there to assist the chapter
members - for example, asking staff to take minutes of chapter meetings - rather than
the chapters and their members existing to assist the Agency and its staff. The OEG's
report notes that some of AHS' museum directors spend between 30 and 40 percent of
their time assisting chapter members in some way.
Board Needs to Address
Several Factors to
Improve Governance
The Board needs to make improvements in several key areas to improve governance.
First, the Board has lagged in addressing some basic governing responsibilities. In
addition, the Board's failure to properly define its relationships with its chapters and
its former Foundation led to poor performance by these groups. Finally, the Board lacks
the strong leadership qualities and expertise among its members necessary to increase
its governance ability.
Common governing board responsibilities neglected - Although A. R. S. 541- 821 charges
the Board with directing and overseeing the Agency, the Board has, until recently, been
relatively inactive in addressing policy and planning issues. A review of monthly Board
meeting minutes for 1993, 1994, and the first three meetings of 1995 held during our
audit revealed that the Board was not focusing on policy- related actions. In more recent
months, various board committees have discussed such issues as revising and updating
policies, discussing the Board's relationship with the chapters and considering needed
( I) Our survey included members from each of the four chapters as follows: Two each from the Rio
Colorado and Northern Arizona Chapters, and seven each from the Central Arizona and Southern
Arizona Chapters. More members were surveyed from Central and Southern Arizona as these chapters
were much larger in number.
legislative changes. However, no formal board action has been taken on these types of
issues to date.
The Board's lack of action on policy issues may, in part, stem from its lack of long- range
planning. According to an AHS official, until recently the Board was not involved in
long- range planning. In the past, any planning efforts appear to have been undertaken
only at the division level. For example, the Central Arizona Chapter prepared a plan
for the Division; however, the effort did not appear to involve the Board. Recognizing
the Board's failure to develop long- range strategic plans, the OEG is assisting the Board
in addressing these issues. According to one AHS official, all Board committees are
currently updating both Board and Agency policies. In addition, the Board is beginning
to work on long- range planning and has just recently developed a vision statement.
However, because its work on policy setting and long- range planning is in the beginning
stages, the Board should ensure that these efforts continue until completed. In addition,
as recommended by literature, provisions should be made for future followup,
evaluation, and update.
Board's relutionships with afliliated groups have been poorly defined - The Board's
relationships with its chapters and the former Foundation have been plagued by unclear
delineation of authority and responsibilities. Three of the four chapters(') started out as
independent local historical societies, and each of these groups was granted charterd2)
from AHS at different times during the 1970s and 1980s. AHS officials confirm that the
chapters are intended to be advisory groups; however, none of the four different charters
spell out this advisory role. Instead, the language used in the charters implies more of
a governing role. For example, one charter states that the chapter has the power to
" initiate, control, manage, review, and supervise all museums, facilities and programs
of the Society within the chapter area ..." Also, all four charters allow the chapters to
elect their own " board of directors," implying governing responsibilities. The OEG report
also recognized the unclear role of the chapters, characterizing the relationship between
the Board and its chapters as unproductive power conflicts. The Board's relationship
with its former Foundation also suffered from being poorly structured. For example,
no provisions were made for the transfer of information between the two groups when
the relationship was established. Therefore, as noted previously, the Board had much
difficulty obtaining financial information from the Foundation.
The working relationship between the Board and its chapters is further confused by
cross- membership, or chapter members' service on the Board. While literature indicates
cross- membership can be beneficial in enhancing communication, it appears that some
AHS Board members, who also serve on chapters, have had difficulty making the
distinction between their governing and advisory roles. This problem was also evident
in the Board's relationship with its former Foundation, as several Foundation members
( I) The chapters in Phoenix, Flagstaff, and Yuma were previously local historical societies. However, the
chapter in the Tucson area is made up of individuals independent of any local historical group.
(') A charter is an authorization from an organization to establish chapters. In the case of AHS and its
chapters, the charters also outline certain rights and responsibilities of the chapters.
also served on the Board. At times, these cross- members did not seem to be able to
distinguish whether they were representing the Foundation or the Board. This lack of
an " arm's length" relationship contributed to the failure of the relationship, according
to an AHS official. Moreover, to ensure members serving AHS in more than one capacity
are aware of their individual roles, the Board should make efforts to communicate the
specific roles for the Board and its affiliated groups.
In order to clarify the role of the chapters, the Board should consider reassessing its
relationship with these organizations and renegotiating their charters. New charters that
state an advisory relationship and lay out advisory responsibilities should clarify the
role the chapters are to play. As recommended by the OEG, the new charters should
limit the chapters' responsibilities to fund- raising, advice, and counsel to the Board and
agency management regarding programs and exhibits, and recommendations of potential
new Board members. In addition to clarifying its relationship with its chapters, AHS
should ensure that any future relationships with other affiliated groups, such as
foundations, are properly established.
Board lacks suficient diversity and periodic renewal - A lack of diversity and periodic
renewal of Board members can lead to stagnation and further contribute to ineffective
governance. For example, the OEG's report identifies the lack of museum experts or
business leaders as a problem for the Board. Our review confirmed the OEG's findings.
We found that the Board, as a whole, has few members with museum or management
expertise. In contrast, several other states' historical societies we contacted attempt to
recruit governing board members who have museum expertise or are corpo-rate/
community leaders. Moreover, literature suggests that board member traits that
are most desirable include:
Knowledge of the organization's field of endeavors - Members with this
knowledge can help direct professional/ technical staff and evaluate the technical
aspects of the organization's programs.
I Contacts - Members with contacts can help generate private funding for the
organization.
Management expertise and leadership skills - Members with business and
leadership skills can help run the business side of the organization, assist with
legislation, and also aid in fund- raising efforts.
In addition to lacking sufficient diversity among its membership, the Board has failed
to periodically renew its members, further lessening its effectiveness. According to
bylaws, Board members are permitted to serve two consecutive three- year terms.
However, the Board has the right to waive this requirement, thus allowing members
to serve numerous consecutive terms. We identified eight current Board members who
have served more than two consecutive terms, four of whom have been on the Board
for over ten years or more. In contrast, literature recommends that boards establish an
automatic rotation system to assure periodic infusion of " new blood to bring new ideas
and perspectives into the organization. Typically, board members should serve no more
than two three- or four- year terms consecutively, and they should complete one full year
off the board before running for reelection. Therefore, the Board should take steps to
address this potential problem of stagnation by removing provisions for waiving term
requirements from their bylaws. The Board will soon achieve some of the needed
periodic member rotation through its annual election. Some of the long- term members
have indicated that they will not seek reelection at the November 1995 annual meeting.
Finally, the State has no say in Board memberships despite the large appropriation it
provides. For example, the State provided approximately 80 percent or $ 3.9 million of
the $ 4.9 million budget in fiscal year 1994- 95. In contrast, most historical societies in other
states that receive a majority of their funding from state appropriations have all or part
of their governing board positions appointed by state officials. Moreover, the OEG's
report echoes those structures by recommending that all 30 Board positions be appointed
by the Governor. Therefore, while we did not determine an appropriate mix of state-and
privately selected Board members, we believe that some level of state- appointed
membership is needed.
RECOMMENDATIONS
1. The Legislature should consider amending A. R. S. § 41- 821 to provide for state-appointed
members to the Board.
2. To address its governing responsibilities, the Board should:
Continue to work on long- range planning and policy development.
Oversee fund- raising activities to ensure adequate funds are available.
Provide an adequate level of oversight of museum collections.
3. To improve its relationships with its chapters and other affiliated groups it may deal
with in the future, the Board should:
Reassess its relationship with its chapters and recharter them so that the advisory
role of these groups is clearly stated.
Ensure that roles and lines of authority are clearly delineated when establishing
future relationships with affiliated or support groups.
4. To increase diversity and add periodic renewal and state representation, the Board
should:
Target corporate and community leaders and persons with museum expertise for
future board membership.
Remove bylaw provisions that allow waiver of term limits.
OTHER PERTINENT INFORMATION
During the audit, we obtained other pertinent information regarding the completion of
the Arizona Historical Society's Papago Park Museum, located in Tempe.
Background
In the early 1980s, recognizing the State's population is concentrated in Central Arizona,
and in response to the inadequacy of existing historical facilities, the AHS Board of
Directors declared the construction of a major new museum facility in this area to be
the Agency's priority. Efforts to create, design, and construct such a facility began in
1984 when the City of Tempe donated approximately 10 acres of land in Papago Park.
The Legislature appropriated funds for museum design in 1985 and appropriated funds
for construction in 1988. By 1991, construction in both of the Museum was completed
at a total cost of $ 9.2 million. While the State funded the construction and operating
expenses for the Museum, AHS was to raise funds to design and construct the exhibits.
Museum Opening Delayed
Although originally projected to open in July 1994, AHS currently plans to open the
Museum in January 1996, over one and one- half years beyond the original estimate and
five years after completion of the building. Poor fund- raising efforts and dispute over
control of the Museum appear to be the two primary factors contributing to the delay:
Lack of fund- raising - While construction on the building itself was completed in
1991, fund- raising activities lagged far behind. As noted earlier in the report, any
funds for museum exhibits and programs must be raised from private donations.
To do this, AHS had relied on the AHS Foundation, a private nonprofit organization,
to raise the estimated $ 5.5 million needed to complete the exhibits and prepare the
Museum for its opening day. The first significant contribution to the Museum came
in fiscal year 1986- 87, when the Marley family donated $ 1 million to develop the plan
outlining the concept for the Museum exhibits. However, beyond that contribution
there does not appear to have been sufficient planning for future fund- raising
activities. According to the AHS Foundation 1993 status reports, the AHS Board failed
to give adequate direction to the Foundation on fund- raising goals, time frames and
priorities, and to identify potential donors for the Foundation.
Overall, the AHS Foundation did little to move AHS closer toward its overall fund-raising
goal. According to an AHS official, the Foundation raised only $ 2.6 million
from 1986 to 1994, although the Division had estimated in 1986 that about $ 5.5
million was needed. In fact, the Foundation appeared to spend much of the money
it raised on its own administration. For example, the Foundation spent $ 170,000 of
the $ 214,000 it raised in fiscal year 1993- 94 to cover support expenses. Unsatisfied
with the progress of the Foundation in raising the needed funds and the weakened
relationship, AHS dropped its association with the Foundation in February 1994. It
was not until a year later, February 1995, that AHS hired a consultant to raise the
approximately $ 3 million needed to complete the exhibits and open the Museum.
I Dispute over control of Museum - Further delaying the Museum's opening, AHS
and its Foundation wrestled for control of the project. As noted in Finding I1 ( see
pages 13 through 18), the relationship between AHS and the AHS Foundation was
unstable. Further testing its relationship with the Board, the Foundation wanted
involvement in exhibit construction and planning. For example, the Foundation
contracted with the Bureau of Reclamation ( BOR) for the construction of an exhibit,
as the BOR had provided the Foundation the grant money for the exhibit. Work on
this project further diverted the Foundation's attention from fund- raising.
Additional control issues surfaced when an Intergovernmental Agreement ( IGA) to
transfer control of the Museum to the Department of Library, Archives and Public
Records was executed in 1994. According to Agency officials, members of the
Foundation were involved in arranging the agreement between the Department of
Administration ( DOA) and the Department of Library, Archives and Public Records
which was negotiated and agreed upon without AHS' knowledge. Although the
Attorney General's Office determined that DOA could not transfer AHS' responsibility
for the Museum to another agency, the existence of the agreement affected AHS'
ability to raise funds. According to AHS officials, the turmoil caused by this proposal
set back the exhibits' construction by at least one year because private donors were
hesitant to give monies they had pledged when they did not know who was in
control. Also due to these control issues, BOR suspended grant funding for its exhibit
for several months in 1994, delaying the project's completion.
Current Status
As noted earlier, AHS is preparing the exhibits for the opening scheduled in January
1996. At that time, five of the ten planned exhibits will be completed and open to the
public. According to an Agency official, the exhibits are in the final preparation stages
and will open to the public as scheduled. The remaining exhibits are expected to be
completed and full opening of the museum is anticipated in 1997.
SUNSET FACTORS
In accordance with A. R. S. 541- 2954, the Legislature should consider the following 12
factors in determining whether the Arizona Historical Society should be continued or
terminated.
1. Objective and purpose in establishing the Agency.
Although in existence since 1884, the Arizona Historical Society ( AHS) was
established as a state agency by the Legislature in 1913 to " collect, preserve,
interpret, and disseminate the history of Arizona, the West, and Northern Mexico."
AHS is also charged with designating, upon legislative approval, historical
organizations for each county in the State and contracting with designated local
societies for services to be performed for the benefit of the State. These contracts
enable AHS to ensure that history is being adequately collected, recorded, and
preserved on a local level. Statutes further specify that AHS is to publish the Journal
of Arizona History at least four times a year.
AHS has four museums across the State ( in Tucson, Flagstaff, Yuma, and Phoenix)
to serve the public and also provides assistance to researchers. AHS augments its
60 staff by using volunteers who serve in many capacities and donated over 40,000
hours of time in fiscal year 1994- 95.
2. The effectiveness with which the Agency has met its objectives and purposes
and the efficiency with which the Agency has operated.
AHS has generally been effective at meeting its objectives, though there is some
concern over its effectiveness in " preserving" history. Our consultants' review of
AHS museum collections found that AHS could improve the care of artifacts in
its possession in order to decrease the likelihood that artifacts will deteriorate ( see
Finding I, pages 5 through 11).
In addition, AHS' Board, the governing body of the Agency, needs to improve its
oversight of the Agency's museums, fund- raising efforts, and relationships with
its chapters and other affiliated groups ( see Finding 11, pages 13 through 19).
3. The extent to which the Agency has operated within the public interest.
AHS operates in the public interest by providing educational, research, and
recreational opportunities to the public. AHS also provides technical assistance to
local and county historical societies. AHS provides many of these services free of
charge to the public, as required by statute. Approximately 108,000 individuals
visited AHS museums and attended AHS programs during fiscal year 1994- 95.
4. The extent to which rules and regulations promulgated by the Agency are
consistent with the legislative mandate.
AHS has no statutory authority to promulgate rules.
5. The extent to which the Agency has encouraged input from the public before
promulgating its rules and regulations and the extent to which it has informed
the public as to its actions and their expected impact on the public.
AHS has no authority to promulgate rules.
However, the public is generally informed of Board activities. For the most part,
meetings of the Board of Directors are held in accordance with all Arizona
governmental open meeting laws.
6. The extent to which the Agency has been able to investigate and resolve
complaints that are within its jurisdiction.
This factor does not apply as the AHS has no statutory authority to investigate and
resolve complaints.
7. The extent to which the Attorney General or any other applicable agency of
state government has authority to prosecute actions under the enabling
legislation.
The AHS enabling legislation does not establish such authority.
8. The extent to which the Agency has addressed deficiencies in its enabling
statutes which prevent it from fulfilling its statutory mandate.
Our review did not identify any deficiencies in its enabling statutes which prevent
it from fulfilling its statutory mandate.
9. The extent to which changes are necessary in the Agency's laws to adequately
comply with the factors listed in the subsection.
Our review did not identify any need for changes to the AHS statutes regarding
compliance with the factors. However, we identified a need for state representation
on the Board. Currently Board members are elected by the general membership
of AHS as outlined in A. R. S. 541- 821. C. Therefore, a statutory change would be
required to mandate state- appointed members on the Board, ( see Finding 11, pages
13 through 19).
10. The extent to which termination of the Agency would significantly harm the
public health, safety, or welfare.
Termination of AHS would not significantly harm the public's safety, health, or
welfare. However, without AHS, the citizens of our State would lose a valuable
educational and recreational programming center that maintains the history of
Arizona, the West, and northern Mexico. If AHS were terminated, the museums
could be turned over to local historical societies or some other private organization.
However, because private funding covers only about 20 percent of AHS' expenses,
there currently would not be sufficient funds available to maintain staffing and
other operating needs of the museums.
Combining AHS' responsibilities with another related agency does not appear to
be a viable option. Although other state agencies, such as Library and Archives
and State Parks, appear to have overlapping responsibilities with AHS, this overlap
is slight as each Agency has its own distinct responsibilities. For example, Library
and Archives has one division that collects materials similar to those that AHS'
archives collects; however, its primary mission involves collecting historical
documents related to state and local governments. Furthermore, State Parks is
responsible for the preservation of historic properties. Although AHS oversees some
historic properties, this is not a major focus of the Agency, and it only becomes
involved with a historic property if it is threatened with destruction. Finally, all
three agencies participate jointly in the Historical Advisory Commission, which
works to coordinate ( to avoid duplication) historical preservation activities
throughout the State.
11. The extent to which the level of regulation exercised by the Agency is
appropriate and whether less stringent levels of regulation would be
appropriate.
This factor does not apply as the AHS has no regulatory authority.
The extent to which the Agency has used private contractors in the
performance of its duties and how the effective use of private contractors
could be accomplished.
AHS has made extensive use of private contractors in its Papago Park Museum
endeavor. For example, AHS has contracted out projects such as the concept plan
that gave Papago Park its theme, and interactive computer programs for exhibits.
In addition, the Agency used private contractors to write a grant to fund the Tucson
museum's successful " El Encuentro" exhibit. Finally, AHS uses contracting for
security services and accounting systems development. Given the size of its staff,
AHS would not have been able to complete these activities and functions without
contracted personnel.
Agency Response
ADMINISTRATIVE
HEADQUARTERS.
PUBLICATION
OFFICES.
Tucson
949 E. Second Street
85719
602/ 628- 5774
I MUSEUMS.
LIBRARIES.
ARCHIVES.
Flagstaff
2340 N. Fort Vallev Road
86001
6021774- 6272
Tempe
1300 N. College Avenue
Tucson
949 E. Second Street
85719
I Yuma
240 Madison Avenue
85364
602n82- 1841
Arizona Historical Society
founded by Arizona pioneers in 1884
Administrative Headquarters 949 E. Second St. Tucson AZ 85719 ( 602) 628- 5774 FAX ( 602) 628- 5695
October 17, 1995
Douglas R. Norton,
Auditor General
Auditor General's Office
291 0 North 44th Street
Phoenix, Arizona 8501 8
Dear Mr. Norton:
The following is in response to the Performance Audit and Sunset
Review draft report of October 10, 1995. 1 wish to commend your
staff for their hard work and diligence in completing their audit of the
Arizona Historical Society. I do, however, have reservations about
the section that focuses on collections management. Virtually the
entire discussion is based on the report of a single individual who, in
my opinion, has a myopic point of view. As I discussed with your
staff when consultants were being suggested, I felt there was a
need to have -- in addition to a conservator-- someone with a
broader knowledge of history museum management. This would
have provided balance to the conservator's viewpoint.
In her conclusions, the consultant states that " AHS falls
considerably short of professional expectations for quality
collections management and care and the conditions are those of a
local museum, not a state supported agency." I vehemently
disagree with this statement. Since the addition of the new wing to
our Tucson facility in the mid- I 970s we have been a leader in
collections management and care within the state. The care of
collections at AHS is equal to or better than that of other comparably
funded state agencies in Arizona and elsewhere in the country. The
only state- run historical agencies that exceed our standards for
storage and collections management have operating budgets in
excess of $ 7 million. With the possible exception of the Heard
Museum in Phoenix and the Center for Creative Photography at the
University of Arizona, the Arizona Historical Society has the best
facilities and the best collections management in Arizona. The
Arizona Department of Library and Archives, State Parks, and
Arizona State Museum have no climate- controlled facilities and their
storage conditions are at the level of AHS's Flagstaff and Yuma
operations. The report is correct when it states we need to rectify
conditions in Yuma and Flagstaff, something that is well known to
the AHS staff and board of directors. All of the state's collections
should be placed in modern and professional collection storage.
However, the fact is that close to 60,000 of the Society's more than 70,000
artifacts are housed in clean, organized, climate- controled facilities. In
addition, virtually 100% of our libraries, photographic collections, and
archives are preserved in good storage facilities.
In comparing our collections management with that of other institutions
across the nation, I know that we considerably outrank facilities such as the
Natural History Museum of Los Angeles County and the Museum of New
Mexico. Even our Flagstaff museum, with its artifacts stored under " bad"
conditions, nonetheless has its photographs and documents -- the facilities
largest single collection - well housed.
I also find fault with the report's discussion of our new museum in Tempe.
The report criticizes us for not focusing enough resources on Flagstaff,
Yuma, and Tucson, and suggests that we should be spending money
presently committed to the Tempe museum to improve our other facilities.
At the same time, the report notes the good climate controls in the Tempe
facility and commends it as a modern museum. Ten years ago, the
Society's collections in the TempelPhoenix area were housed in a historic
house similar to the one in Flagstaff. The decision was made to build a
modern new facility in central Arizona. Since then the board, staff, and
volunteer organizations have worked very hard to create the new facility in
Tempe. It is an excellent museum, with considerable capacity for skilled
collections- management practices and exhibit displays. You cannot have it
both ways -- that is, criticize AHS for not having a state- of- the- art facility in
Tucson and, at the same time, criticize us for creating a state- of- the- art
facility in Tempe. Creation of the new museum in Tempe has increased the
collections- management staff for the entire Society. The legislature has
been very generous in appropriating funds for the Tempe facility. As a
result, we have authorization for a full staff that includes five new positions
in collections management. Now, we can address similar concerns
elsewhere in the state.
We have begun working with citizens, board, and staff to plan new facilities
in Flagstaff. We hope to present a request to the legislature in the next
budget cycle. The people of Yuma have gone to extraordinary lengths to
raise money for renovating " The Molina Block." As in Flagstaff, plans are
underway to construct modern storage facilities adjacent to the historic
adobe building. The new facilities in Flagstaff and Yuma are imperative in
order to bring collections care up to the standard recommended by the
Auditor General..
I agree that environmental controls, crowding of collections, and lack of
staff are all concerns in our Tucson facility. Climate control is an issue
because of changes from dry desert to humid environment during Tucson's
summer monsoon season. We have succeeded in slowing the drastic
change in humidity, but we have not been able to eliminate it. As the
Library and Archives consultant notes, slowing the change places
considerably less stress on collections than rapid and erratic shifts.
The report is correct when it notes that we are short- staffed in Yuma,
Flagstaff, and Tucson. A photographer was transferred from Tucson and is
now in charge of collections management in Flagstaff. Again we cannot
have it both ways - we are being criticized for losing staff in Tucson and, at
the same time, for not providing enough staff in Flagstaff.
It is also true that one of our Tucson exhibits is old and outdated. I know of
no other 11 1 - year- old organization that does not have some exhibits that
need to be changed. Planning and fund raising for updating the Tucson
exhibits have been underway for some time.
I also disagree with the report's conclusion that collections management at
AHS is jeopardized by lack of board oversight. The board has been very
concerned with collections policies. In the mid- 1 980s the AHS board
adopted a whole series of policies and procedures under which collections
would be managed. The board also very correctly determined that the
major issue in the Society's development was the creation of the facility in
Tempe.
Board members are extremely concerned about Flagstaff and Yuma. The
Society has always had an intense focus on collections management. The
reports made in the 1980s all came out of the Society's desire to improve
its storage conditions. That improvement has not occurred as fast as
people would like is a factor of limited budgets and the economy. In fact, I
would suggest that our ability to create a facility in Tempe, in the midst of a
recession and years of state budget cuts, is a testament to the Society's
commitment to the history it preserves and interprets.
The staff and board of the Arizona Historical Society support the Auditor
General's recommendations for increased funding for collections care and
for the creation of a Development Officer. In fact, on several occasions we
have requested funds to expand our staff in Yuma and Flagstaff; we
continue to work on a plan that will enable us to do so. Staff and board
have completed considerable training, and we are in the process of
implementing our strategic plan. Facilities and staff are both major areas of
our planning process. AHS has one of the smallest state historical agency
budgets in the country. And it is smaller still when you realize that $ 1.2
million of the $ 3.9 million in state appropriated dollars is for the
leaselpurchase of the new historical facility in Tempe.
The Auditor General's recommendation to increase funding by $ 1 million is
too small to construct new facilities in Flagstaff and Yuma, and to complete
major renovation of the Tucson facility.
In conclusion, the Arizona Historical Society has always been concerned
about its collections and collections management. We hope that the
Auditor General's report will help us achieve our goal.
Sincerely, - #& Michael F. Weber, Ph. D.
Executive Director
Arizona Historical Society
ADMINISTRATIVE
HEADQUARTERS *
PUBLICATION
OFFICES.
Tucson
949 E. Second Street
85719
602/ 628- 5774
MUSEUMS.
LIBRARIES -
ARCHIVES.
Flagstaff
2340 N. Fort Valley Road
86001
602P74- 6272
Tempe
1300 N. College Avenue
85281
6021929- 0292
Tucson
949 E. Second Street
85719
602/ 628- 5774
Yuma
240 Madison Avenue
85364
6021782- 1841
Arizona Historical Society /
founded by Arizona pioneers in 1884
Administrative Headquarters 949 E. Second St. Tucson AZ 85719 ( 602) 628- 5774 FAX ( 602) 628- 5695
RESPONSE TO AUDITOR GENERAL'S REPORT, FINDING II
The following response deals only with portions of the Auditor General's
performance audit which concern the Arizona Historical Society's Board of Directors.
The audit's recommendations to improve the governing abilities of the board
are for the most part on point and sensible. These suggestions, however, are not
novel ideas, newly raised to the board's awareness. In fact, study and discussion have
been ongoing, and the board has taken action on many of them. For a volunteer
board, whose members frequently travel to meetings from corners of the state six to
ten hours round trip, and who receive no reimbursement or compensation for their
efforts, it has shown uncommon interest, energy, and pioneer spunk in dealing with
the difficulties of the past several years. Is every issue resolved? Of course not.
What board could make such a claim?
In 1994, the Office for Excellence in Government reviewed the structure and
management of the society and began guiding the agency toward a positive " culture
change," which the board was told would take a number of years to accomplish. The
society's committee on governance and policy studied the OEG recommendations,
and implementation began on those which were approved by the board. Because the
audit accepts OEG findings apparently without question, and because the audit
effectively ended in the spring of 1995, some accomplishments of the board have been
unfortunately overlooked.
The board, originally 40, was reduced to 30 through attrition but maintains
representation from all Arizona counties. Board training is ongoing, beginning with
a two- day retreat and several other exercises facilitated by the OEG. Recently,
several board members attended the state's training for members of boards and
commissions. During 1995, the board approved a vision statement; each committee
articulated its duties, responsibilities, and goals; a staff member began streamlining the
board policy manual; and senior staff engaged in very productive strategic planning
sessions-- all setting the stage for policy development at the board level and an agency
wide long- range plan in the very near future.
The selection process for members of the board has undergone modification.
A board member from each of the four geographic zones of the society will be
appointed by the governor, assuming approval by the legislature in its next session.
A revamped recruitment system is now in place, reaching out to every historical
organization on the society's mailing list, as well as to members of the business,
corporate, and municipal communities. Term limitation provisions are being more
strictly enforced, which will lead to renewal but also means losing institutional
memory and very valuable experience.
A word about the current board. The audit accepts the 1994 OEG finding that
the board lacks sufficient diversity, museum professionals, and those with management
experience. Looking at the board list, one will find that women, Hispanics, and local founding
families are well represented. Among board members elected in 1994 were a builder, a college
administrator, and a former director of programming for a major Washington, D. C. performing arts
complex. In November 1995, three corporate leaders are expected to join the board. Among the
current members are museum directors, school administrators, elected city officials, a former state
senator now in university administration, former diplomats, medical and legal professionals, authors,
artists, a government manager, community volunteers, and men and women who have operated
businesses and corporations. The vast majority also have direct experience with museums andlor
historical societies. The wealth of talent and ability among these amateur historians who love history
and wish to preserve it has accounted for many of the society's successes.
The question then becomes, with such a wealth of talent and ability, what stymied private
sector findraising and thus delayed the opening of the society's museum in Papago Park? Quite
simply, the failure of the society's former foundation to raise sufficient money, coupled with various
battles waged against the society for operational control of that museum. During a period of almost
two years, the board had little choice but to spend inordinate amounts of time dealing with the
constant onslaught. The board knew it, resented and regretted it, and was terribly frustrated by it.
( See " Other Pertinent Information" for details.) As soon as the society's authority over the museum
was clarified, and when the society did not receive the requested appropriated monies for a
development officer, the board approved a contract with a private find- raiser. His successful efforts
have been instrumental in making it possible for the museum to open to the public in January 1996.
The board understands that some collections in certain society facilities need improved care
and management but does not accept the view that there is " neglect of routine care of collections
agency wide." The audit holds the society to a standard that is seldom achieved in the real world ( and
nowhere in Arizona with the possible exception of the Center for Creative Photography), a standard
that is virtually unattainable except at institutions with lavish budgets. Repeated appeals for necessary
staff positions and funds to care for collections, which the society holds in trust for the state, have
been refused by the legislature. The society is hopeful that the emphasis given to this matter within
the audit will result in appropriated funds being made available.
The society is a complicated network of affiliated support groups, most of which understand
their roles and are content. However, the need to better define and task the four chapters has long
been recognized and is under review by the board even now. Because the expectations and desires
of chapter boards vary widely, and because the distinction between advice and governance has blurred
over time, the society has found that the issue will not yield to a quick or easy resolution. The society
board will continue to work toward a satisfactory delineation of chapter authority and the clarification
of roles and responsibilities for chapter boards.
The society has a complex structure and a long convoluted history-- the organization has
grown more like a western weed than a disciplined plant in an ornamental garden. It should be
remembered that less than 20 years ago, the society was simply a parochial Tucson institution,
operating a museum there and not much else. One by one, local operations came under the society
umbrella-- Central Arizona, Yuma, Flagstaff, Pine- Strawberry, Douglas. Tremendously successful
outreach programs began to educate and delight thousands of Arizona schoolchildren. Contracts with
local historical organizations for artifact curation were instituted, along with a potent field services
operation to assist those entities. Across the country, the publications division gained a well deserved
reputation for professional excellence. The exhibits division brought truly first- class displays into the
Tucson museum time aRer time. The involvement by the Rio Colorado division in the Yuma
Crossing project has brought great credit to the society.
When floods swamped the Greenlee County Historical Society museum, the society was there
to offer expert assistance. When there was a need to preserve the crumbling Hubbel Trading Post
in Wmslow, the society stepped in. When the Guevavi mission site needed to be protected, members
of the society's board assisted in negotiating necessary transfers of land. When historic locomotives
in Flagstaff and streetcars in Phoenix were threatened, society volunteers gave them new life. The
society protected the fledgling State History Convention until it now flourishes on its own. Historic
preservation workshops and regional meetings for local groups have educated hundreds of volunteers
around the state, making them powerful voices and willing hands to preserve their own history,
thereby enriching us all.
The truth is that membership on the society board in recent years has been anything but a
tranquil experience. The board has long recognized multiple pressing needs but has been constrained
by limits of time, money, and statfing. There have been the frustrations of struggling to preserve the
society as a state agency while powerful forces sought to break it apart. There have been the
hstrations of repeatedly stretching limited resources thinly in order to carry out the society's mission
statewide. That many members have continued to serve on the board under such conditions is a
credit to their dedication to history and to the state. As a board, we may not have reached perfection,
but we've made great strides. I'm proud to know the members and to have served with them.
Patricia Davis Brandt
President of the Board of Directors
Arizona Historical Society
October 18, 1995
APPENDIX A
APPENDIX A
The Office of the Auditor General contracted with Bettina Raphael and Sharlane Grant
to assist in our audit of the Arizona Historical Society. As museum preservation experts,
the two were contracted to assist us in assessing how effective AHS has been in
preserving the items entrusted to the museums. Sharlane Grant conducted a library and
archives assessment of the museum in Tucson and of the yet- to- be opened Papago Park
Museum. Bettina Raphael conducted general museum assessments of the museums in
Flagstaff, Tucson, and Yuma, and the Papago Park Museum. Listed below are their
qualifications.
I Sharlane Grant - is a conservator specializing in " books and paper." She is the
Preservation Officer of the State Historical Society of Wisconsin and previously
served as the Head of the Preservation Department of the Arizona State University
Libraries. Ms. Grant had conducted the library and archives portion of the 1989 -
Tucson museum assessment. She has conducted other assessments sponsored by
the Institute of Museum Services as well.
Bettina Raphael - is the owner/ conservator of the Southwest Conservation
Laboratory in Santa Fe, New Mexico. The Southwest Conservation Laboratory
provides general assessments, condition surveys of artifacts, storage planning,
environmental monitoring, and long- range conservation planning. Previously, Ms.
Raphael was the Senior Artifact Conservator at the Museum of New Mexico from
1984 to 1992 and has over 20 years' experience in museum conservation. Ms.
Raphael was recommended by several individuals within the Arizona museum
community.
Copies of the consultants' reports are available for review at the Office of the Auditor
General.
a- i
Prescott Historical Society
INTRODUCTION AND BACKGROUND
The Office of the Auditor General has conducted a performance audit and sunset review
of the Prescott Historical Society pursuant to a May 5, 1993, resolution of the Joint
Legislative Audit Committee. This audit is conducted under the authority vested in the
Auditor General by A. R. S. 5541- 2951 through 41- 2957.
History and Purpose
The Prescott Historical Society ( PHs) was established as a state agency in 1964 to operate
the Sharlot Hall Museum which was founded in 1927. PHs is governed by a 15- member
board that is elected from the membership of the Society ( approximately 800 individuals
are members). The responsibilities of PHs include preserving, maintaining, and
perpetuating the gubernatorial mansion, Sharlot Hall Museum, and the historical
collections. The Museum also collects historical items, provides educational programs,
and maintains a research library. It is mandated to keep the collections and historical
materials accessible to the public free of charge. In fiscal year 1994- 95, the Museum
served over 69,000 visitors.
Although the primary function of PHs is similar to that of the Arizona Historical Society
( AHS), to collect and preserve Arizona history, PHs is a separate agency. The idea of
combining the two agencies has been addressed in recent years. For example, in 1988,
the Arizona Cost Efficiency Commission consultant's report recommended that all
historical activities of several agencies, including AHS and PHs, be merged to gain
operating efficiencies and save almost $ 120,000 per year.( 1) However, the Joint Legislative
Budget Committee ( JLBC) staff also studied the issue as part of the fiscal year 1991- 92
budget process and concluded that " little, if any, savings would result from such a
move." According to JLBC staff, they found no staff positions that could be eliminated
if PHs and AHS were combined. Further, they estimated staff salaries at PHs would
have to be increased to equalize them with AHS staff.
Budget and Personnel
Prescott Historical Society receives both state appropriations and private funding. State
appropriations account for almost 70 percent of the Society's funding and are used for
staff salaries, utilities, and operating expenses. In fiscal year 1994- 95, PHs was
( I) The Commission, appointed by a former governor, focused on evaluating the operations and
administration of all state agencies to improve efficiency and effectiveness and identify opportunities
to eliminate waste or reduce costs.
27
appropriated approximately $ 536,000. Private funding is provided by donations,
membership sales, gift shop sales, and other sources and is directed toward Museum
exhibits and programs. In fiscal year 1994- 95, PHs raised an estimated $ 240,000 from
private sources accounting for almost one- third of total expenditures.
PHs is authorized 16 FTE staff who work in the collections, archives, education, and
support departments. Its staff include a curator, an archivist, a designer, and clerical
and maintenance staff. In addition, PHs utilizes the service of volunteers who, in 1994- 95,
contributed over 25,000 additional hours of service at the Museum in various capacities,
such as working in the gift shop, guiding tours and answering visitor questions,
developing photos, working at special events, and assisting with exhibit, archive, and
collection work.
Audit Scope
During the audit, we reviewed the Museum facilities and functions and found no
significant problems. In fact, a 1991 review conducted by the American Association of
Museums ( AAM), an accrediting body, found the Society's collection storage areas to
be in " immaculate condition" and that there were clear, well- written procedures for the
care of the collections. Also, the committee found the exhibits areas were " well thought
out" and well maintained. As a result of the review, the Museum received full
accreditation in 1992.
PHs has further managed to effect improvements in its operations since the AAM study.
For example, PHs has modernized its security system, climate control system, and
storage methods to even better protect the collection. In addition, PHs is working to
enhance its exhibits by constructing new exhibits and by adding interactive components
to add more educational value.
In reviewing the Board's activities, we did note a few areas needing improvement.
However, the deficiencies noted were limited and did not appear to significantly impact
the ability of the Agency to fulfill its mission. Therefore, instead of developing audit
findings, areas for improvement are addressed in the statutorily mandated Sunset Factors
( see pages 29 through 32).
The audit was conducted in accordance with government auditing standards.
The Auditor General and staff express appreciation to the President of the Board of
Trustees, Board members, and the staff of the Prescott Historical Society for their
cooperation and assistance during the audit.
SUNSET FACTORS
In accordance with A. R. S. 541- 2954, the Legislature should consider the following 12
factors in determining whether the Prescott Historical Society should be continued or
terminated.
1. Objective and purpose in establishing the Agency.
The Prescott Historical Society ( PHs) was established by the Legislature in 1964
to " preserve, maintain and perpetuate the gubernatorial mansion, the Sharlot Hall
Museum, and the historical collections contained therein." The statute also directs
PHs to procure, protect, preserve, and display museum items pertaining to the
history of Arizona and the West. While PHs collects and holds in trust historical
items representing all of Arizona's history, its particular emphasis is on the Central
Mountain Region of Arizona.
2. The effectiveness with which the Agency has met its objectives and purposes
and the efficiency with which the Agency has operated.
PHs has generally been effective at meeting its objectives of preserving its historical
collections and providing a wide range of museum services for the people of
Arizona. In 1992, the Museum received full accreditation from the American
Association of Museums ( AAM), a nationally recognized museum accreditation
body. As noted earlier, the accreditation committee found the collections and
exhibits areas to be " well thought out," and immaculately maintained.
PHs has operated efficiently by maintaining its operations and serving a growing
population though it has not increased its staffing level in 15 years. It has been able
to do so, in part, by increasing private donations, utilizing volunteers, and obtaining
private grants for conservation and other projects.
However, the Board could improve its effectiveness in overseeing the Agency in
three ways.
First, to increase its effectiveness in guiding the agency, the Board should ensure
a long- range plan is developed for PHs. Although PHs developed a long- range
plan for facility additions and improvements in 1991, there has been no strategic
plan for the Agency in recent years. In fact, during its accreditation process, the
AAM reviewers noted the need for developing a long- range plan " to ensure a
thriving Sharlot Hall Museum entering the 21st century." Further, based on our
review of 1993 and 1994 Board minutes, it does not appear that the Board has been
engaged in any long- range planning nor made any major policy decisions during
those two years. According to literature on Board operations, a plan is needed to
define the expected long- term results for the Agency and to provide a tool for the
Board to measure performance. Further, development of a plan will give direction
to the Agency's activities and provide a framework for Board decision making. To
fulfill its role, the literature suggests that the board must be involved in planning
and insist that it is done; however, Agency staff, as the experts, should be
responsible for creating the plan.
Second, to bring more community leaders and more fund- raising and museum
expertise to the Board, the Board should improve board member recruitment.
According to literature, the current recruitment method, where prospective board
members are recommended by current members, can result in a homogenous board.
When recruiting, the Board should examine the profile of its membership and seek
new members with needed skills or expertise. Achieving a greater diversity on the
Board will provide more broad- based support and new ideas for the Agency.
Finally, the Board should assess its own performance periodically. According to
literature, a governing board should ensure it is working effectively by evaluating
its performance on items such as: long- term planning, organization, bylaws,
membership composition, preparation for meetings, and resource development.
The extent to which the Agency has operated within the public interest.
PHs operates in the public interest by providing educational, research, and
recreational opportunities to the public free of charge as well as by aiding in
preserving the history of the State. PHs provides volunteer tour guides for school
groups and is currently involved in a fourth- grade curriculum project. In addition,
the archives and collections are used by graduate students, scholars, filmmakers,
and other historians. In fiscal year 1994- 95, over 69,000 individuals participated in
museum activities which include daily visitation, guided tours, lectures, and special
events.
However, we identified one issue related to operating within the public interest
that should be addressed - state representation on the Board. PHs has historically
received a large portion of its budget ( approximately 70 percent) from state
appropriations. However, the State has no representation on the Agency's governing
board. The current PHs Board is made up entirely of Board members elected by
PHs general membership, as set forth in statute. We did not determine the
appropriate mix of state and private board members; however, we believe that state
representation is needed on the PHs Board.
4. The extent to which rules and regulations promulgated by the Agency are
consistent with the legislative mandate.
Although PHs has not promulgated rules and regulations as mandated by statute,
it has established policies that sufficiently fulfill the mandates.
5. The extent to which the Agency has encouraged input from the public before
promulgating its rules and regulations and the extent to which it has informed
the public as to its actions and their expected impact on the public.
While meetings have been open to the public, PHs failed to comply with Open
Meeting Law requirements regarding proper notification of Board meetings.
Specifically, PHs had not provided a statement to the Secretary of State on where
the meeting notices would be posted, as required by A. R. S. 538- 431.02. PHs staff
were not aware of this requirement and after this was brought to their attention,
they filed the required statement on July 25, 1995.
6. The extent to which the Agency has been able to investigate and resolve
complaints that are within its jurisdiction.
This factor does not apply as PHs has no statutory authority to investigate and
resolve complaints.
7. The extent to which the Attorney General or any other applicable agency of
state government has authority to prosecute actions under the enabling
legislation.
The PHs enabling legislation does not establish such authority.
8. The extent to which the Agency has addressed deficiencies in its enabling
statutes which prevent it from fulfilling its statutory mandate.
Our review did not identify any deficiencies in its enabling statutes which prevent
it from fulfilling its statutory mandate.
9. The extent to which changes are necessary in the Agency's laws to adequately
comply with the factors listed in the subsection.
Our review did not identify any need for changes to the PHs statutes regarding
compliance with the factors. However, Sunset Factor three discusses the need for
state representation on the Board. Since statute currently sets out election by the
society membership as the Board member selection method, a statutory change
would be required to allow state- appointed Board members.
10. The extent to which termination of the Agency would significantly harm the
public health, safety, or welfare.
Termination of PHs would not significantly harm the public's safety or health.
However, without PHs, Prescott and other Arizona communities would lose a
central resource, educational, and recreational programming center that maintains
the history of the Central Mountain Region, Arizona, and the West.
If PHs were terminated, the Museum could be turned over to the private historical
society that helps support PHs. However, as noted earlier, the private funding
covers only 30 percent of PHs' operating expenses. Therefore, there would be
insufficient funds available to maintain staffing and other operating needs of the
Museum.
Alternatively, Arizona Historical Society ( AHS) could possibly absorb PHs
responsibilities, if it were terminated. However, as noted earlier, the Joint Legislative
Budget Committee ( JLBC) staff determined there would be no cost savings gained
from such a move. In fact, JLBC staff estimate that merging PHs with AHS could
prove more costly, as PHs staff salaries would need to be increased to match those
of AHS. Further, given our concerns regarding AHS' inability to properly support
its own branch museums, we question its ability to adequately support another
museum.
11. The extent to which the level of regulation exercised by the Agency is
appropriate and whether less stringent levels of regulation would be
appropriate.
This factor does not apply as the PHs has no regulatory authority.
12. The extent to which the Agency has used private contractors in the
performance of its duties and how the effective use of private contractors
could be accomplished.
PHs does not use private contractors on a regular basis. On occasion PHs contracts
with museum conservation specialists to perform highly specialized conservation
work, such as the repair of damaged clothing artifacts and other historical items.
Agency Response
Sharlot Hall
October 18, 1995 Museum 415 West Gurley Street
Prescott. Arizona 86301
State of Arizona
Office of the Auditor General
Douglas K. Norton, Auditor General
2910 North 44th Street, Suite 410
Phoenix, Arizona 85018
Dear Mr. Norton:
The Prescott Historical Society is in receipt of the revised preliminary report draft of our
performance audit, and your cover letter of October 10, 1995.
I appreciate the attentiveness and courtesies of your staff. My meeting at your Phoenix
office was very productive, and Maureen Tonn has been especially helpful. This
museum's Board of Directors is pleased that our institution receives such favorable
comments.
This final response to the report, as requested in your cover letter, will address each
Sunset Factor in turn:
1. Objective nrzd purpose irl estnblishirlg the Agerzcy.
It is stated that PHs's " particular emphasis is on the Central Mountain Region of
Arizona." That is true, but it is a challenge to clearly define that region geologically,
biologically, and as per prehistoric and historic human settlement patterns. Our on-going
work is to develop parameters that clarify the extent of the Central Mountain
Region. This is seen as a positive challenge, and an opportunity for collaboration
with other institutions, as well as an opportunity for public education.
2. The effectiverless ~ i ~ iutIhhi ch the Agerzcy has 11zet its objectives n~ zdp LLrposes R I Zt~ he efficiency
zoith zi~ hich the Ageilcy hns opernted.
The report states " the Board could improve its effectiveness in three ways:"
a. " ensure a long range plan is developed." New management at the executive
and Board levels at Sharlot Hall are in full agreement with this observation, and have
embarked on the process of developing an inclusive long- range plan. The recently
appointed museum director, Richard Sims, identified the need for planning early on,
and brings that experience from other museums. Board President Earl Swansen, in
a memo 6 the ~ xeiutiveC ommittee dated September 8,1995, notes that " the sure way
Prescott Historical Society ( 602) 445- 3122
to end up in the dust bin of history is to go about our day- to- day business with no
plans for future development. This is especially true of not- for- profit organizations
with volunteer boards of trustees." Submittal of the recent Strategic Plan requested
by OSPBIOEG serves as a useful prelude to full- scale long- term planning.
b. " improve board member recruitment." On September 6, a highly productive
meeting among the Board's Nominating Committee and the Executive Committee,
including the new museum director, clarified that a readiness exists to break old
patterns of recruitment and to reach out with more focused efforts at recruitment of
diverse community leaders in business, education, and philanthropy.
c. " the board should assess its own performance periodically." We agree, and
are working in appropriate committees to schedule retreats and workshops that
promote reflection and assessment. The Board and museum director attended the
Board Member Training hosted by OEG on September 27 in Phoenix.
3. The exterzt to zuhich the Agerzcy has operated zuithirl the p~ lblic interest.
The report states that " state representation is needed on the PHs board." That
suggestion seems tempered somewhat by language in the Summary section, where
it is stated that " although we did note that the Board needs improvement in a few
areas, these deficiencies did not appear to significantly impact the ability of the
Agency to fulfill its mission."
The PHs Board is interested in continuing this discussion of state- or Governor-appointed
board member( s). Many community leaders on the Board regard their
presence now as " state representation" in the full citizenship sense of the term, in the
sense of responsible taxpayers accepting fiduciary responsibility for assignment of
general tax revenues. Other Board members are willing to explore the process by
which a slate of one- to- three locally nominated people would be appointed at the
state or Governor level to fill one Board vacancy. It is understood that most state
Boards do have some measure of state appointment, although many of those boards
have regulatory authority, which PHs does not.
The Auditor General's own survey of other state historical agencies provided
some informative data. For instance, of the 44 states surveyed, 27 historical agencies
have at least 50% state funding, and 16 of that 27 have some measure of state or
Governor appointment. That survey also revealed no clear relationship between level
of state appropriations and level of state appointments.
The PHs Board at its most recent board meeting ( October 17) put forth a
willingness to cautiously explore the suggestion of state representation, and
authorized the Museum Director to proceed with general discussions with the
appropriate parties.
4. The extent to which rules and regtilntions promulgated by the Agency are consistent with the
legislative mandate.
As the report acknowledges, there are board- established policies that are
synonymous with " rules and regulations."
5. The extent to zuhich the Agerzcy has encouraged inptit from the public before promulgati~ zg its
rttles and regtilatio~ zs and the extent to zuhich it has informed the ptiblic as to its actions and
their expected impact on the public.
Indeed, we were not aware of the required communication with the Secretary
of State. That has been corrected.
6. The exterzt to zohich the Agency has been able to irzvestignte and resolve complaints that are
zoithin its j~ irisdictio~ l.
Not applicable, as stated.
7. The extent to zuhich the Attonzey Gelzeral or any other applicable agency of state government
has nttthority to prosecute actions ttnder the ennblilzg legislation.
As stated. No comment.
8. The exterzt to zohich the Agerzcy has addressed deficierzcies irz its enabling stattites which
preverzt it fro~ if~ tlfillirzg its statutory nzarzdate.
As stated. No comment.
9. The exterzt to zuhich cha~ zges are necessary in the Agency's laws to adeqtiately comply with
the factors listed in the sttbsection.
The draft report states that " a statutory change would be required to allow
state- appointed Board members." PHs desires further discussion with the
appropriate state agencies or legislative committees to better understand the necessity
of effecting a statutory change.
10. The exterzt to zohich terrrlirzatiorz of the Agency zuo~ tlds ig~ zijicantlyh arm the ptiblic health,
safety, or welfare.
We appreciate the recognition as " a central resource, educational, and
recreational programming center." PHs and the Sharlot Hall Museum strive diligently
to fulfill that mission. There exists a firm resolve on the part of the Board and the
Museum Director that PHs retain its independence from AHS, for operational and
logistical reasons beyond the cost- effective business approach put forth by JLBC.
11. The extent to zuhich terrrziizntio/ z of the Agerzcy zootild sig~ zificalztly hnrnz the ptiblic health,
safety, or zoelfnre.
As stated. No comment.
12. The extent to zuhich the Agency has tised private corztrnctors iiz the performa~ zce of its duties
and how the effective use of private corztrnctors cotild be nccornplished.
As stated. No comment.
We anticipate a successful conclusion to the performance audit at the November 21st
meeting of the Committee of Reference. Thank you for the constructive insights you
have provided concerning the operations of Prescott Historical Society/ Sharlot Hall
Museum.
Sincerely,
Richard S. Sims
Director

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PERFORMANCE AUDIT
HISTORICAL SOCIETIES
Report to the Arizona Legislature
By the Auditor General
October 1995
Report # 95- 7
DOUGLAS R. NORTON, CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL
DEBRA K. DAVENPORT, CPA
DECUTI& UDITOIIC. ENEII& L
October 24, 1995
Members of the Arizona Legislature
The Honorable Fife Symington, Governor
Dr. Michael Weber, Executive Director
Arizona Historical Society
Mr. Richard Sims, Executive Director
Prescott Historical Society
Transmitted herewith is a report of the Auditor General, A Performance Audit of the
Historical Societies. This report is in response to a May 5, 1993, resolution of the Joint
Legislative Audit Committee. The performance audit was conducted as part of the
sunset review set forth in A. R. S. 9941- 2951 through 41- 2957.
The report addresses both the Arizona Historical Society ( AHS) and the Prescott
Historical Society ( PHs). Regarding AHS, we found that the Agency needs to improve
the care of its historical collections to ensure Arizona's history is preserved for future
generations. Further, the AHS Board needs to improve its oversight of the Agency
to ensure its mission is fulfilled. Our report also discusses the delay in opening the
new Papago Park Museum due to lack of fund- raising and disputes over control of
the museum. Regarding the Prescott Historical Society, we found an agency with a
fully accredited museum and no significant deficiencies. While we did note that the
Board needs improvement in a few areas, these deficiencies have not appeared to affect
the Agency's ability to fulfill its mission. Our recommendations for improvement are
included in the Sunset Factors.
My staff and I will be pleased to discuss or clarify items in the report.
This report will be released to the public on October 25, 1995.
Sincerely,
Do'u sg R. N orton
Auditor General
Enclosure
2910 NORTH 44TH STREET. SUITE 410 . PHOENIX, ARIZONA 85018 m ( 602) 553- 0333 1 FAX ( 602) 513- 0051
SUMMARY
The Office of the Auditor General has conducted a performance audit and sunset review
of the Historical Societies, pursuant to a May 5,1993, resolution of the Joint Legislative
Audit Committee. The audit encompassed the Arizona Historical Society ( AHS) and the
Prescott Historical Society ( PHs). This audit was conducted under the authority vested
in the Auditor General by Arizona Revised Statutes ( A. R. S.) § § 41- 2951 through 41- 2957.
Arizona Historical Society
The Arizona Historical Society's mission is " to collect, preserve, interpret and disseminate
the history of Arizona, the West and northern Mexico." To fulfill this mission, AHS cares
for a collection of books, records, photographs, and objects related to Arizona history.
For example, AHS has in its possession Wyatt Earp's shotgun and Geronimo's medicine
pouch. These collections are housed and displayed in AHS museums in Tucson, Tempe,
Flagstaff, and Yuma.
The Agency is governed by a 30- member board, charged with overseeing the Agency and
its 60- member staff. The Board has also organized chapters to advise it on museum
programs and exhibits, as well as to conduct fund- raising. Our review of the Arizona
Historical Society resulted in two findings covering the need to improve museum
collection management and the need for an effective governing board.
AHS Needs to Improve
Museum Collection Management
( See pages 5 through 11)
AHS needs to make fundamental improvements in the care of museum collections, which
are its most valuable assets. In the 1980s, reviews of the AHS museums conducted by
museum consultants cited serious concerns about the level of care AHS provided its
collections and the deterioration of artifacts that might result. Although the reviews gave
AHS direction for enhancing collections care, progress in implementing these recom-mendations
has been slow. In fact, our consultant who reviewed the collections
determined that " AHS falls considerably short of professional expectations for quality
collection management and care." For example, some collections items are still stored in
an unfinished attic in one museum, although this had been noted as a problem in 1989.
As a result, this collection is vulnerable to roof leaks, poor ventilation, and daily weather
changes.
Several factors have compromised AHS' ability to make improvements, including limited
funding and inadequate staffing. In addition, routine care of the collection is, at times,
Several factors have compromised AHS' ability to make improvements, including limited
funding and inadequate staffing. In addition, routine care of the collection is, at times,
overshadowed by the more visible activities such as opening the new Papago Park
Museum or preparing new exhibits. To ensure preservation of Arizona's history for future
generations, AHS needs to increase the resources available for the care of its collections.
Nearly $ 1 million is needed, $ 900,000 of which is needed for properly equipping the
museums and upgrading environmental control systems. Another $ 100,000 is needed to
hire three staff to care for the collections. To accomplish this, AHS should designate a
development officer position that is devoted to raising funds for all its programs,
especially collection care enhancements.
AHS Board Needs to Improve as
Governing Body of the Agency
( See pages 13 through 19)
The AHS Board needs to improve its governance of the Agency, as it has not fully
addressed some key responsibilities. As the governing body, the Board must oversee
museum operations and fund- raising efforts to ensure the Agency fulfills its mission.
However, the Board has not adequately fulfilled these responsibilities. For example, it
has yet to complete a long- range plan for the Agency. As a result, the opening of a new
museum has been delayed and collections care overlooked. Also contributing to the
problems is the Board's failure to properly define and ensure affiliated groups adequately
fulfill their roles. As a result, some members of the Board's affiliated groups have
attempted to overstep their advisory and fund- raising roles and exert control over AHS'
operations. To improve, the Board must make fundamental changes, such as completing
development of policies and long- range plans, reassessing its relationship with its
affiliated groups, and providing for diversity and State representation on the Board.
Prescott Historical Society
( See pages 27 through 32)
The Prescott Historical Society is responsible for preserving, maintaining, and perpetuating
the Sharlot Hall Museum, the gubernatorial mansion, and the historical collections located
therein. PHs is governed by a 15- member board that oversees the Agency operations and
its 16 staff members. Our review of the Museum facilities and functions found no
significant problems. In fact, the Museum was fully accredited in 1992 by the American
Association of Museums. In evaluating the Museum for accreditation, a review team found
the collection storage areas to be in " immaculate condition" and the exhibits areas " well
thought out." Although we did note that the Board needs improvement in a few areas,
these deficiencies did not appear to significantly impact the ability of the Agency to fulfill
its mission. These areas for improvement are addressed in the Sunset Factors for the
Agency.
Table of Contents
Paqe
Arizona Historical Societv
Introduction and Background . . . . . . . . . . . . . . . . . . . . . . . . 1
Finding I: AHS Needs to lmprove
Museum Collection Management . . . . . . . . . . . . . . . . . . . 5
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
AHS Has Been Slow in Implementing
Previous Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Resources for Collection
Management Lacking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
More Centralized Development
and Resources Needed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Finding II: AHS Board Needs to lmprove
as Governing Body of the Agency . . . . . . . . . . . . . . . . . 13
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Board Has Not Provided
Sufficient Oversight of AHS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Board Needs to Address
Several Factors to
Improve Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Table of Contents
Arizona Historical Societv ( con't)
Other Pertinent Information . . . . . . . . . . . . . . . . . . . . . . . . 21
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Museum Opening Delayed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Current Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Sunset Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Agency Response
Appendix A
Prescott Historical Societv
Introduction and Background . . . . . . . . . . . . . . . . . . . . . . 27
SunsetFactors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Agency Response
Arizona Historical Society
INTRODUCTION AND BACKGROUND
The Office of the Auditor General has conducted a performance audit and sunset review
of the Arizona Historical Society, pursuant to a May 5, 1993, resolution of the Joint
Legislative Audit Committee. This audit was conducted under the authority vested in
the Auditor General by A. R. S. # 41- 2951 through 41- 2957.
History and Purpose
The Arizona Historical Society ( AHS) predates statehood. In 1884, at a Tucson hotel,
a group of citizens formed the Society of Arizona Pioneers with the intent of preserving
the history of their struggle to claim and settle the Arizona Territory. In 1897, the
territorial legislature recognized and began funding the Society. In 1913, AHS became
a state agency. The Society's purpose has remained consistent, though expanded, as
exemplified by its mission statement:
" To collect, preserve, interpret and disseminate the history of Arizona, the West, and
northern Mexico. "
AHS originally operated only one museum in Tucson. Then, in the 1970s and 1980s, three
local historical societies joined AHS, giving the Agency a total of four museums that
cover various geographical areas of the State: Yuma, Flagstaff, Tucson, and metropolitan
Phoenix. Each museum is part of a regional division, and shares the same general
mission of collecting, preserving, interpreting, and educating the public on Arizona
history, with each division concentrating on the history that is unique to that region.
Three of the Agency's four primary museums served approximately 108,000 visitors
during fiscal year 1995.( 11 In addition, as mandated by statute, AHS certifies local
historical organizations that work to preserve Arizona history around the State.
Specifically, the Board certifies that these nonprofit organizations have functioning
programs of historical value thereby allowing it to contract with these certified organiza-tions
to perform services for the benefit of the State.
( I) The fourth museum, Papago Park, located in Tempe, is scheduled to open to the public in January
1996.
Organizational Structure
and Staffing
A. R. S. 941- 821 establishes a Board of Directors to direct and oversee the Agency. This
Board, comprised of 30 members representing all Arizona counties, meets on a monthly
basis to conduct Society business. The Board members are elected by the Society's
membership ( a total of 3,500 members). The Board has organized four chapters to advise
it on museum programs and exhibits, as well as conduct fund- raising. The presidents
of these chapters, as well as some other chapter members, also serve on the Board.
To carry out its mission, the Board appoints an Executive Director and employs 60 Full-
Time Equivalent staff ( FTEs). The staff are organized into seven divisions, including four
geographic divisions each operating its own museums:
The Central Arizona Division will operate the Papago Park Museum in Tempe with
10 staff. It is responsible for preparing the museum for its opening, in addition to
caring for the library, archives, and the almost 30,000 artifacts the Museum holds.
The Southern Arizona Division operates three museums in Tucson with 22.5 staff.
The staff work in maintaining the library, archives, and photo collections, caring for
the 27,000- item collection and providing education programs. The main Tucson
museum is the only museum operated by AHS that is fully accredited by the
American Association of Museums, a nationally recognized organization.
w The Northern Arizona Division operates the Pioneer Museum in Flagstaff with 3 staff.
The Division maintains the 12,000- artifact collection, and archival material and photos,
and provides education programs.
w The Rio Colorado Division is responsible for the Century House Museum in Yuma
utilizing 3.5 staff. The staff maintain a collection of 2,000 artifacts, archival material,
and 12,000 photos.
w The Exhibits Division, consisting of 9 staff, assists the museums in the design and
construction of exhibits. Currently, the staff are concentrating on the design and
construction of the exhibits for the new Papago Park Museum.
w The Publications Division publishes a quarterly journal and books on Arizona history
with 3 staff.
The Administrative Division of 8 staff provides support for the entire society in areas
such as accounting, budgeting, contracting, and personnel.
AHS also utilizes the services of volunteers to assist in a variety of activities, such as
museum tours, artifacts cataloging, and gift shop operations. During fiscal year 1994- 95,
these individuals volunteered over 40,000 hours of service to the Agency.
Budget
In fiscal year 1994- 95 AHS' $ 4.9 million total budget was comprised of both state and
private funding. State appropriations accounted for $ 3.9 million or 80 percent of the
budget and are used to pay the cost of operating the Society's buildings and for
personnel. The remainder of AHS' budget is obtained privately through donations, grants,
and other private sources, such as membership dues and gift shop revenues. These
private monies are raised primarily to fund AHS' programs and exhibits and about two-thirds
of these monies are received from donors or grantors who restrict the funds to
be used only for specific purposes. For example, a corporate donor provided AHS the
funding to process a particular photo collection. The remaining private monies are used
to fund 11.5 staff and a portion of the Agency's operating expenses such as utilities,
professional services, postage, printing and photography, and repair and maintenance
expenses.
Scope and Methodology
This audit focused primarily on AHS' ability to fulfill its mission to collect and preserve
our State's history, and the Board's governing structure. To assess AHS' performance
in meeting its mission to collect and preserve history, we contracted with two
independent consultants with expertise in this area.(') One consultant evaluated the care
of the Agency's Tucson and Tempe library and archives containing historic books and
records. This included a followup to a 1989 evaluation of Tucson's facilities. The second
consultant visited all four museum divisions to evaluate collections storage conditions
and to report on progress the museums have made since they were last evaluated in
the mid to late 1980s. These previous evaluations include a general assessment by the
American Association of Museums ( AAM) of the Yuma museum in 1983 and an AAM
assessment that dealt specifically with the collection in 1986. In Flagstaff, an AAM
general museum assessment was conducted in 1988. In addition, a building assessment
was conducted by Janus Associates, Inc. in 1989 using the Secretary of the Interior's
Standards for Historic Preservation Projects. Also in 1989, an assessment of the Tucson
museum was facilitated by the Institute of Museum Services.
In conjunction with our consultants' review, we visited each museum, contacted other
state historical societies and national associations, and reviewed literature on collections
management.
Appendix A ( see page a- i) provides detail on the two consultants' backgrounds and areas of expertise.
Copies of the consultants' reports are available for review at the Office of the Auditor General.
3
To aid in our study of the Agency's governing structure, we conducted a literature search
to identify books, pamphlets, and articles focusing on nonprofit or government boards
of directors. Our work also included an extensive review of Board minutes, observation
of Board meetings, and a survey of chapter members, as well as a comprehensive survey
of over 40 other state historical societies. In addition, we reviewed a study conducted
by the Governor's Office of Excellence in Government in 1994, which also included
information and recommendations regarding AHS' governing structure.
Our audit report of AHS presents findings and recommendations in two areas:
The need for AHS to improve management of its collections; and
The need for the Board to improve its effectiveness.
In addition to these areas, we present a section of other pertinent information that
discusses the current status of AHS' newest museum, Papago Park Museum.
This audit was conducted in accordance with government auditing standards.
The Auditor General and staff express appreciation to the President of the State Board,
Board members, and the management and staff of the Arizona Historical Society for
their cooperation and assistance throughout the audit.
FINDING I
AHS NEEDS TO IMPROVE MUSEUM
COLLECTION MANAGEMENT
" Historical Collections ... are the bedrock upon which the practice of history rests."
- American Association for State and Local History
AHS needs to make fundamental improvements in the care of its museum collections.
Although previous reviews provided AHS direction for enhancing its collection
management, progress in implementing those recommendations has been slow. Several
factors, including limited funding and staffing, and other competing needs, account for
this slow progress. To ensure preservation of its collections, AHS should increase the
resources devoted to basic museum functions.
Background
The preservation of historical items is a challenging but necessary component of museum
management. Artifacts, photographs, and archival material are prone to the natural
processes of aging and deterioration. Environmental factors such as humidity,
temperature, and light levels all influence the rate of deterioration. Museums are charged
with the responsibility of taking steps to slow the deterioration process in order to
increase the longevity of the items in their care. By monitoring and controlling the
environment and by providing proper storage areas, museums can effectively slow
deterioration, thereby maintaining the collections for future generations. AHS' collections
include artifacts, books, maps, photographs, and archival material such as old news-papers
and business records. Items are stored at all four museums and range from the
spectacular, such as Geronimo's medicine pouch and Wyatt Earp's shotgun; to the rare,
such as old photographs; to the more common, such as 19th- century furniture.
Because deterioration is a subtle and somewhat less visible process, we retained the
consulting services of two individuals, an artifact conservation expert and a library and
archives expert, to assist us in examining preservation efforts. The consultants examined
those factors that have the greatest impact on a museum's ability to effectively preserve
its collection: environmental factors, storage and exhibit conditions, and the number of
staff available to properly care for the collection. AHS had initiated assessments of its
museums in the 1980s that allowed us to conduct a " then and now" study to determine
whether conditions have improved.
AHS Has Been Slow in
Implementing Previous
Recommendations
AHS has made slow progress in improving its overall collection management. Despite
earlier studies that identified shortcomings and proposed solutions, AHS has neglected
to make improvements in some areas of collection care.
Earlier studies found inadequate conditions - Assessments of AHS museums conducted
during the 1980s found a number of deficiencies that had existed prior even to AHS
acquiring the museums and their collections. AHS assumed responsibility for the local
Yuma County Historical Society in 1982 and the local Flagstaff Historical Society in 1984,
both of which had suffered severe financial cutbacks. The previously noted assessments
initiated by AHS to determine the extent of existing problems found a number of long-standing
deficiencies in the areas of environmental control, storage methods, and exhibit
procedures. At the same time, AHS received a grant that funded an assessment of the
Tucson museum. Specifically, the assessments noted:
Environmental Controls - Controls designed to protect museum collections from
extreme temperature changes and other environmental conditions were inadequate
in each museum. For example, the Flagstaff report noted that parts of the collection
were stored in environments that were prone to extreme temperature changes and
subject to large quantities of dust. In Tucson the heating and cooling system did not
work properly, resulting in high temperatures which tend to accelerate deterioration
of some materials.
Storage Methods - Storage methods necessary to protect the artifacts were also
inadequate at all three museums. For example, the Yuma report found one storage
area lacked any air circulation and the main storage area subjected the collections
to high light levels which, if high enough, could induce fading of the materials. The
Tucson report noted that costumes and textiles were being damaged due to the
manner in which they were folded and placed on narrow shelves or into boxes.
Exhibit Procedures - Inadequate exhibit procedures were also noted, contributing
to deterioration of certain items. For example, the Flagstaff report noted that " many
objects on exhibit are exposed to too much light for too long a time," which can cause
deterioration and fading in many materials. Additionally, in Tucson, artifacts on
exhibit were susceptible to contact with abrasive surfaces, which can cause scratching.
Limited improvements have occurred - Our consultant found that while some
improvements have been made since the previous reviews, all three museums continue
to need improvements. For example, our library and archives consultant found that the
Tucson library department had completed or made significant progress on almost every
recommendation made in the previous survey. While the consultant commended the
library department for its commitment and initiative she found that some areas still need
work and others deserve ongoing attention. More serious concerns were identified by
our artifacts consultant, who reviewed the overall condition of all the museums. In fact,
she determined that " AHS falls considerably short of professional expectations for quality
collection management and care." She further described conditions at the museums as
those that are to be expected from local museums, not from a state- supported agency,
and concluded that given present industry practices, AHS is not adequately preserving
its collections.
Specifically, lack of progress was noted in the following areas:
I Environmental Controls - Problems regarding environmental controls over
temperature, humidity, and light were found in all three of the museums. For
example, the Flagstaff museum is still unable to monitor environmental conditions
as it lacks the necessary tools to monitor humidity and temperature. On- site testing
by the consultant found the humidity to be unacceptably low, which is a major factor
in the deterioration of organic materials such as leather, wood, textiles, and paper.
In addition, while the museum in Yuma has purchased environmental monitoring
equipment, staff have not been able to obtain accurate readings. Further, our
consultant found the temperature to be unacceptable for collections storage. For
example, temperatures as high as 86' F were recorded in collections areas, though
the recommended level is only 65' to 70' F. This is significant when just a 10- degree
rise in temperature doubles the rate of deterioration in many materials. Finally,
although the Tucson museum has addressed problems with its heating and cooling
system, our library and archives consultant found that seasonal rises in relative
humidity are endangering the collections. Moreover, our artifacts consultant found
that the museum had exceeded the appropriate levels of moisture in the air, thereby
increasing the potential for deterioration.
I Storage Methods - Storage problems remain an issue at each museum. For example,
while some of the most vulnerable materials have been removed from the unfinished
attic in the Flagstaff museum, the majority of items continue to be stored there,
leaving the collection exposed to roof leaks, poor ventilation, and daily weather
changes. Additionally, the Yuma museum lacks adequate storage area. As a result,
items such as Native American baskets of considerable value must be stacked for
storage, risking distortion of their shapes. The Tucson museum has improved storage
capabilities by purchasing some space- efficient museum cabinets. However, the
storage area is equipped to handle only one- half to two- thirds of the artifacts
currently housed there. As a result of overcrowding, both the Museum's own items
as well as borrowed items have been damaged.
I Exhibit Procedures - Exhibit methods in all three museums are outdated and
potentially harmful to the artifacts. All of the museums use older exhibit cases
constructed of less than ideal materials ( wood, paint, glue) which produce gases that
are harmful to many artifacts, as they accelerate the aging process. In fact, some
Tucson exhibits have been on display for 20 years using such outdated materials and
methods. For example, guns were mounted with unpadded metal brackets, which
could scrape or corrode them. In addition, light levels in some Yuma museum exhibit
cases are three to ten times greater than recommended for light- sensitive materials
such as textiles and paper objects, leading to premature fading and color distortion.
Resources for Collection
Management Lacking
Lack of resources appears to be the primary factor contributing to the slow rate of
progress. Limited funding and staffing have been available to provide the proper care
of collections due in large part to the competing needs of more visible projects.
Limitedfunding available for improvements - Funding for museum enhancements has
been limited to monies received from grants and other private sources. Although AHS
receives almost 80 percent of its operating monies from legislative appropriations, nearly
all of that amount is directed toward basic expenses such as salaries, utilities, and capital
expenditures. From the remaining appropriated funds, only a minimal amount is
available for collection storage upgrades and other preservation projects.( 1) Thus, AHS'
ability to affect improvements has been limited. For example, according to AHS officials,
the Tucson museum received only $ 2,100 in fiscal year 1994- 95 for collection storage
upgrades, while Flagstaff received no monies at all.
To meet additional needs, each museum depends on fund- raising and grant- writing
activities. However, AHS officials report limited success in raising funds to improve the
care of the collections and, as a result, many needs remain unmet. According to AHS
officials, potential donors are more willing to sponsor visible projects rather than the
" behind the scenes" expenses of routine collection care. For example, in fiscal year 1994-
95, the Yuma museum received approximately $ 1,500 from private sources for collections
storage upgrades, Flagstaff received approximately $ 6,500, and Tucson received about
$ 4,800 for its collection needs. However, these amounts are minimal when compared
to the need for essential preservation items such as expensive storage and environmental
equipment. For example, the 1989 Flagstaff assessment reported a need for approximately
$ 8,000 worth of storage units. Likewise, the 1989 Tucson assessment recommended that
the Museum's long- range plan include replacing old, inefficient storage cabinets, which
the staff estimate could cost up to $ 100,000.
Inadequute staffzng levels - In addition, museums lack the necessary staff to carry out
their responsibilities, according to the consultant's assessments. While the collection has
grown, doubling over the last 20 years, staffing levels have remained constant and in
AHS has made requests for capital improvements and risk management grants to improve its facilities
and collections storage capability. For example, AHS has requested $ 20,000 for fiscal year 1996- 97 to
repair a roof leak over a collections storage area at the Yuma museum.
some instances have decreased. Our artifacts consultant specifically commented on the
inadequacy of staffing at each museum:
I Yuma - Yuma lacks the staff to effect the changes necessary to significantly upgrade
the quality of collection care and management. The 1986 assessment had noted that
" job descriptions and lists of activities place collection care and documentation in
the middle or at the end of the lists." This inattention continues even today as the
curator can spend only 15 percent of her time working directly with collection
activities, due to her many other responsibilities. In addition, while the earlier
assessment recommended adding a staff position, no new staff have been added over
the last ten years. In fact, the loss of an almost full- time volunteer has effectively
reduced the staff size.
I Flagstaff - The consultant found the Flagstaff museum to be severely understaffed.
The two professional staff must share many tasks such as preparing and installing
exhibits, organizing the annual festival, and conducting public programs, leaving little
time for working with the less- visible collection. For example, little time has been
devoted to formally documenting and processing some items which were donated
to the Museum in the 1980s. Moreover, the Museum is dependent on the efforts of
dedicated volunteers, whose future time commitments should not be counted upon.
Without these volunteers, routine preservation needs, such as the cleaning and oiling
of saddles on exhibit, may not be attended to.
Tucson - The consultant found the present number of collections staff to be " clearly
inadequate to cope with the extensive and growing collections management and care
needs." Though the size of the collection continues to grow, two positions have been
transferred away from this museum in the last seven years. As a result, the Museum
has been unable to complete some routine tasks such as documenting and registering
new acquisitions. Moreover, though the Museum aspires to complete yearly
inventories, it has been unable to conduct an inventory in four years.
Competing needs - Finally, the consultant expressed concern that projects visible to the
public have received much of AHS' attention. For example, during the past several years
AHS has been focused on building, funding, and preparing the new Papago Park
Museum, which is expected to open in 1996. The consultant expressed concern that the
Museum's construction and operations have already drained ( and may continue to drain)
AHS' limited resources to the detriment of the three other branch museums. For example,
though the exhibits in all museums need renovation, the majority of exhibits personnel
are working on Papago Park. Additionally, employees in Tucson had been told that the
priority of the Board was to open the Papago Park Museum and that for the foreseeable
future that is where new appropriated dollars would be utilized.
More Centralized Development
and Resources Needed
A more concerted effort is needed to obtain the funds and resources necessary to better
preserve Arizona's history. Specifically, AHS should establish a development officer
position to facilitate fund- raising activities. Once the funds are raised, at least a portion
of them should be earmarked for preservation needs.
Development oficer needed - A first step in " jump starting" fund- raising efforts and
ensuring the adequate preservation of Arizona's history is the establishment of a
development officer position. Currently, fund- raising and grant writing depends largely
on the initiative of individual staff in the various divisions. However, other states'
experience suggests that fund- raising through a development officer could benefit AHS.
As has been done in other states, creation of a fund development officer should be
viewed as an investment rather than an expense. AHS will need to invest at least $ 96,000
to fund the position for two years, after which time the position should become self-supporting
through private donations.(') Other states surveyed all benefited from having
development offices. For example, the 2.5 FTEs working in the development office of
the New Jersey Historical Society raised $ 700,000 in one year. Even more successful, the
Colorado development office raised $ 1.2 million in fiscal year 1994. On a smaller scale,
the 1.5 FTEs in the Rhode Island development office raised $ 150,000. Locally, the Phoenix
Art Museum, which has a six- person development office, recently reported that it raised
$ 14 million in private funds toward its capital campaign over the last several years.
The Office of Excellence in Government also recommended the establishment of a
development position, indicating that it would increase effectiveness by coordinating
activities, planning for fund- raising, and developing volunteer fund- raising leadership.
More resources needed - Once effective fund- raising efforts are underway, AHS should
direct sufficient resources to enhance preservation of the collection. As recommended
by our consultant, AHS should provide funding for additional staff and equipment
needed to carry out preservation functions. The consultant found needs in the following
areas:
Staffing Needs - Each museum needs an additional staff member to focus on
collections care. A conservative estimate of the annual cost for such positions would
be about $ 30,000 each, based on current salary and employee- related expenditures
( ERE) levels, for a total of approximately $ 90,000.
( I' We estimate $ 96,000 will be needed to fund the position for two years based on the median salaries
for development positions in organizations with comparable budgets, as reported in the Chronicle of
Philanthropy.
Equipment Needs - Each museum is in need of some degree of environmental
monitoring and storage equipment. While the consultant could not provide a specific
estimate for each item needed, she estimated the total cost for properly equipping
the museums to be approximately $ 640,000. Further, the Tucson museum needs to
continue its efforts to upgrade its environmental control system, which could cost
an additional $ 260,000, according to AHS staff. AHS staff should work to specifically
identify equipment and storage upgrade costs and present those estimates to the
Board for review.
RECOMMENDATIONS
1. AHS should fund a development officer position to enable it to improve its fund-raising
and grant- writing capabilities. To initially fund this position, AHS will need
to consider various funding sources, which include requesting legislative appropria-tions,
redirecting current resources, or exploring private sources.
2. AHS should develop conservation priorities and make a firm commitment to its
collection by earmarking a portion of raised funds for preservation needs, including
staff and equipment.
FINDING II
AHS BOARD NEEDS TO IMPROVE
AS GOVERNING BODY OF THE AGENCY
The AHS Board needs to make improvements in providing governance for the Agency.
Failing to adequately oversee museum operations and fund- raising, the Board contributed
to the delay in opening a new museum and the lack of progress in collections care. To
improve, the Board needs to attend to basic governing board activities, restructure
relationships with affiliated groups, and provide for sufficient diversity on the Board.
Background
AHS is governed by a 30- member Board as established by A. R. S. 541- 821. As with any
typical governing board, the Board is primarily responsible for providing a policy frame-work
for the executive director and his staff and providing overall direction for the
Agency. AHS has four chapter organizations that represent regional historical interests.
The chapters are intended to serve in an advisory capacity to the Board and AHS
division staff. Although the Board is ultimately responsible for raising funds for the
museums' programs and exhibits, it has delegated this activity to the chapters.
Board Has Not Provided Sufficient
Oversight of AHS
Until recently, the Board has lagged in fulfilling its primary responsibilities in several
key areas. First, oversight of fund- raising for the Agency's programs and exhibits has
been, for the most part, weak. Second, inadequate oversight of museum operations has
led to the neglect of routine care of collections agencywide. Finally, the Board has not
provided adequate guidance for its chapter groups; therefore, the chapters are not being
utilized in a way that would fully benefit AHS.
Insufficient oversight of find raising - Although it is a major responsibility, the Board
has not provided for oversight of fund- raising activities. While a significant portion of
AHS operations ( programs, exhibits, collections care, etc.) must be funded by private
monies, the Board does not identify fund- raising needs overall. As noted in Finding I
( see page 5 through ll), the Agency has a need for resources to enhance collections
management; however, it appears the Board has not adequately planned fund- raising
efforts to meet these needs. Rather, funding for improvements has been requested from
the Legislature or obtained by agency staff in a piecemeal fashion addressing only a
small portion of the overall need. Moreover, the Board's difficulties with its former fund-raising
arm, the Arizona Historical Society Foundation, further exemplify its failure to
adequately plan and oversee fund- raising activities. Although deemed a top priority,
the Board has been unable to effectively guide the timely opening of the new Papago
Park Museum. Because state- appropriated monies were dedicated for building operations,
AHS needed to raise money through private donations to develop the exhibits necessary
to open the Museum. In order to carry out this fund- raising task, the Board utilized the
Foundation, a private nonprofit fund- raising organization.
However, AHS was unable to work effectively with its former Foundation to raise the
needed funds. Although the Board had ultimate responsibility for the museum and its
exhibits, some Foundation members wanted to determine the museum's themes and
exhibits. As a result, friction occurred between AHS and the Foundation. According to
information from Foundation officials, the Board did not provide them with needed input
or guidance in planning the fund- raising campaign for Papago Park Museum. At the
same time, AHS officials contend that the Board tried for at least six months to get
financial information from the Foundation, to no avail. The inability of the Foundation
and the Board to work together resulted in " institutional gridlock." Finally, the Board
took control of the situation by giving the Foundation an ultimatum to either turn over
financial reports or risk disassociation. When the Board did not receive the requested
information, it ended its relationship with the Foundation in February 1994. However,
by that time, a one and a- half- year delay toward the opening of the Museum had
occurred. Since the Foundation raised only an estimated $ 2.6 million during its five- year
involvement in the Papago Park Museum project, the Board was left to contract with
a private fund- raiser in February 1995 to raise the remaining funds needed. Since that
time, the contractor has obtained almost $ 3 million in donations and pledges for the
exhibits. ( See Other Pertinent Information, pages 21 through 22, for additional
information regarding the completion of the Papago Park Museum.)
Moreover, the Board has not successfully used its chapter organizations for one of its
primary purposes - fund- raising. As noted earlier, each chapter has the delegated
responsibility to raise funds for its region. However, we found that very little fund-raising
has occurred at this level. In fact, one chapter has raised no funds during the
past several years. AHS officials and chapter members indicated that chapters do not
aggressively raise funds because they feel they have no control over how funds are spent.
Because the chapters are not fulfilling this responsibility, AHS staff are often left to
identify their own private funding sources for programs and exhibits. While it is
necessary for some staff to contribute to fund- raising activities, it appears staff spend
a considerable amount of time on these tasks, rather than performing activities specific
to their particular position. According to a report by the Governor's Office for Excellence
in Government ( OEG), some staff have spent as much as 40 percent of their time on
fund development activities, such as coordinating fund- raising events.
Insufficient oversight of museums - The Board has not provided sufficient oversight
of AHS' four regional museums, resulting in significant problems with the care of its
collections. According to statute, the Board is the trustee of AHS' collections and is,
therefore, responsible for ensuring their proper care. However, as noted in Finding I,
our review of AHS' collections found that care of these collections fell considerably short
of professional standards for a statewide historical organization. In addition, while many
of the deficiencies noted by our artifacts consultant had been identified in previous
reviews conducted in the 1980s, little progress has been made to address these areas.
While the Board has established a collections committee, responsible for general oversight
of all collections, it appears there has been insufficient planning for the overall
improvement of collections care. Rather, the committee's short- and long- term goals focus
on updating the policy manual and implementing a statewide computer system for
collections information.
Guidance for chapters is inadequate - Finally, the Board has provided little guidance
to its chapter groups regarding their advisory role. We surveyed 18 chapter members
to ascertain their perception of what functions they were to assist the Board in, and
found that only 6 of the 18 appeared to understand their role.'') Five of the surveyed
chapter members believed they should have more influence and control over programs
and exhibits and some even felt that it was their responsibility to run the museum. Some
chapter members also seem to believe that agency staff are there to assist the chapter
members - for example, asking staff to take minutes of chapter meetings - rather than
the chapters and their members existing to assist the Agency and its staff. The OEG's
report notes that some of AHS' museum directors spend between 30 and 40 percent of
their time assisting chapter members in some way.
Board Needs to Address
Several Factors to
Improve Governance
The Board needs to make improvements in several key areas to improve governance.
First, the Board has lagged in addressing some basic governing responsibilities. In
addition, the Board's failure to properly define its relationships with its chapters and
its former Foundation led to poor performance by these groups. Finally, the Board lacks
the strong leadership qualities and expertise among its members necessary to increase
its governance ability.
Common governing board responsibilities neglected - Although A. R. S. 541- 821 charges
the Board with directing and overseeing the Agency, the Board has, until recently, been
relatively inactive in addressing policy and planning issues. A review of monthly Board
meeting minutes for 1993, 1994, and the first three meetings of 1995 held during our
audit revealed that the Board was not focusing on policy- related actions. In more recent
months, various board committees have discussed such issues as revising and updating
policies, discussing the Board's relationship with the chapters and considering needed
( I) Our survey included members from each of the four chapters as follows: Two each from the Rio
Colorado and Northern Arizona Chapters, and seven each from the Central Arizona and Southern
Arizona Chapters. More members were surveyed from Central and Southern Arizona as these chapters
were much larger in number.
legislative changes. However, no formal board action has been taken on these types of
issues to date.
The Board's lack of action on policy issues may, in part, stem from its lack of long- range
planning. According to an AHS official, until recently the Board was not involved in
long- range planning. In the past, any planning efforts appear to have been undertaken
only at the division level. For example, the Central Arizona Chapter prepared a plan
for the Division; however, the effort did not appear to involve the Board. Recognizing
the Board's failure to develop long- range strategic plans, the OEG is assisting the Board
in addressing these issues. According to one AHS official, all Board committees are
currently updating both Board and Agency policies. In addition, the Board is beginning
to work on long- range planning and has just recently developed a vision statement.
However, because its work on policy setting and long- range planning is in the beginning
stages, the Board should ensure that these efforts continue until completed. In addition,
as recommended by literature, provisions should be made for future followup,
evaluation, and update.
Board's relutionships with afliliated groups have been poorly defined - The Board's
relationships with its chapters and the former Foundation have been plagued by unclear
delineation of authority and responsibilities. Three of the four chapters(') started out as
independent local historical societies, and each of these groups was granted charterd2)
from AHS at different times during the 1970s and 1980s. AHS officials confirm that the
chapters are intended to be advisory groups; however, none of the four different charters
spell out this advisory role. Instead, the language used in the charters implies more of
a governing role. For example, one charter states that the chapter has the power to
" initiate, control, manage, review, and supervise all museums, facilities and programs
of the Society within the chapter area ..." Also, all four charters allow the chapters to
elect their own " board of directors," implying governing responsibilities. The OEG report
also recognized the unclear role of the chapters, characterizing the relationship between
the Board and its chapters as unproductive power conflicts. The Board's relationship
with its former Foundation also suffered from being poorly structured. For example,
no provisions were made for the transfer of information between the two groups when
the relationship was established. Therefore, as noted previously, the Board had much
difficulty obtaining financial information from the Foundation.
The working relationship between the Board and its chapters is further confused by
cross- membership, or chapter members' service on the Board. While literature indicates
cross- membership can be beneficial in enhancing communication, it appears that some
AHS Board members, who also serve on chapters, have had difficulty making the
distinction between their governing and advisory roles. This problem was also evident
in the Board's relationship with its former Foundation, as several Foundation members
( I) The chapters in Phoenix, Flagstaff, and Yuma were previously local historical societies. However, the
chapter in the Tucson area is made up of individuals independent of any local historical group.
(') A charter is an authorization from an organization to establish chapters. In the case of AHS and its
chapters, the charters also outline certain rights and responsibilities of the chapters.
also served on the Board. At times, these cross- members did not seem to be able to
distinguish whether they were representing the Foundation or the Board. This lack of
an " arm's length" relationship contributed to the failure of the relationship, according
to an AHS official. Moreover, to ensure members serving AHS in more than one capacity
are aware of their individual roles, the Board should make efforts to communicate the
specific roles for the Board and its affiliated groups.
In order to clarify the role of the chapters, the Board should consider reassessing its
relationship with these organizations and renegotiating their charters. New charters that
state an advisory relationship and lay out advisory responsibilities should clarify the
role the chapters are to play. As recommended by the OEG, the new charters should
limit the chapters' responsibilities to fund- raising, advice, and counsel to the Board and
agency management regarding programs and exhibits, and recommendations of potential
new Board members. In addition to clarifying its relationship with its chapters, AHS
should ensure that any future relationships with other affiliated groups, such as
foundations, are properly established.
Board lacks suficient diversity and periodic renewal - A lack of diversity and periodic
renewal of Board members can lead to stagnation and further contribute to ineffective
governance. For example, the OEG's report identifies the lack of museum experts or
business leaders as a problem for the Board. Our review confirmed the OEG's findings.
We found that the Board, as a whole, has few members with museum or management
expertise. In contrast, several other states' historical societies we contacted attempt to
recruit governing board members who have museum expertise or are corpo-rate/
community leaders. Moreover, literature suggests that board member traits that
are most desirable include:
Knowledge of the organization's field of endeavors - Members with this
knowledge can help direct professional/ technical staff and evaluate the technical
aspects of the organization's programs.
I Contacts - Members with contacts can help generate private funding for the
organization.
Management expertise and leadership skills - Members with business and
leadership skills can help run the business side of the organization, assist with
legislation, and also aid in fund- raising efforts.
In addition to lacking sufficient diversity among its membership, the Board has failed
to periodically renew its members, further lessening its effectiveness. According to
bylaws, Board members are permitted to serve two consecutive three- year terms.
However, the Board has the right to waive this requirement, thus allowing members
to serve numerous consecutive terms. We identified eight current Board members who
have served more than two consecutive terms, four of whom have been on the Board
for over ten years or more. In contrast, literature recommends that boards establish an
automatic rotation system to assure periodic infusion of " new blood to bring new ideas
and perspectives into the organization. Typically, board members should serve no more
than two three- or four- year terms consecutively, and they should complete one full year
off the board before running for reelection. Therefore, the Board should take steps to
address this potential problem of stagnation by removing provisions for waiving term
requirements from their bylaws. The Board will soon achieve some of the needed
periodic member rotation through its annual election. Some of the long- term members
have indicated that they will not seek reelection at the November 1995 annual meeting.
Finally, the State has no say in Board memberships despite the large appropriation it
provides. For example, the State provided approximately 80 percent or $ 3.9 million of
the $ 4.9 million budget in fiscal year 1994- 95. In contrast, most historical societies in other
states that receive a majority of their funding from state appropriations have all or part
of their governing board positions appointed by state officials. Moreover, the OEG's
report echoes those structures by recommending that all 30 Board positions be appointed
by the Governor. Therefore, while we did not determine an appropriate mix of state-and
privately selected Board members, we believe that some level of state- appointed
membership is needed.
RECOMMENDATIONS
1. The Legislature should consider amending A. R. S. § 41- 821 to provide for state-appointed
members to the Board.
2. To address its governing responsibilities, the Board should:
Continue to work on long- range planning and policy development.
Oversee fund- raising activities to ensure adequate funds are available.
Provide an adequate level of oversight of museum collections.
3. To improve its relationships with its chapters and other affiliated groups it may deal
with in the future, the Board should:
Reassess its relationship with its chapters and recharter them so that the advisory
role of these groups is clearly stated.
Ensure that roles and lines of authority are clearly delineated when establishing
future relationships with affiliated or support groups.
4. To increase diversity and add periodic renewal and state representation, the Board
should:
Target corporate and community leaders and persons with museum expertise for
future board membership.
Remove bylaw provisions that allow waiver of term limits.
OTHER PERTINENT INFORMATION
During the audit, we obtained other pertinent information regarding the completion of
the Arizona Historical Society's Papago Park Museum, located in Tempe.
Background
In the early 1980s, recognizing the State's population is concentrated in Central Arizona,
and in response to the inadequacy of existing historical facilities, the AHS Board of
Directors declared the construction of a major new museum facility in this area to be
the Agency's priority. Efforts to create, design, and construct such a facility began in
1984 when the City of Tempe donated approximately 10 acres of land in Papago Park.
The Legislature appropriated funds for museum design in 1985 and appropriated funds
for construction in 1988. By 1991, construction in both of the Museum was completed
at a total cost of $ 9.2 million. While the State funded the construction and operating
expenses for the Museum, AHS was to raise funds to design and construct the exhibits.
Museum Opening Delayed
Although originally projected to open in July 1994, AHS currently plans to open the
Museum in January 1996, over one and one- half years beyond the original estimate and
five years after completion of the building. Poor fund- raising efforts and dispute over
control of the Museum appear to be the two primary factors contributing to the delay:
Lack of fund- raising - While construction on the building itself was completed in
1991, fund- raising activities lagged far behind. As noted earlier in the report, any
funds for museum exhibits and programs must be raised from private donations.
To do this, AHS had relied on the AHS Foundation, a private nonprofit organization,
to raise the estimated $ 5.5 million needed to complete the exhibits and prepare the
Museum for its opening day. The first significant contribution to the Museum came
in fiscal year 1986- 87, when the Marley family donated $ 1 million to develop the plan
outlining the concept for the Museum exhibits. However, beyond that contribution
there does not appear to have been sufficient planning for future fund- raising
activities. According to the AHS Foundation 1993 status reports, the AHS Board failed
to give adequate direction to the Foundation on fund- raising goals, time frames and
priorities, and to identify potential donors for the Foundation.
Overall, the AHS Foundation did little to move AHS closer toward its overall fund-raising
goal. According to an AHS official, the Foundation raised only $ 2.6 million
from 1986 to 1994, although the Division had estimated in 1986 that about $ 5.5
million was needed. In fact, the Foundation appeared to spend much of the money
it raised on its own administration. For example, the Foundation spent $ 170,000 of
the $ 214,000 it raised in fiscal year 1993- 94 to cover support expenses. Unsatisfied
with the progress of the Foundation in raising the needed funds and the weakened
relationship, AHS dropped its association with the Foundation in February 1994. It
was not until a year later, February 1995, that AHS hired a consultant to raise the
approximately $ 3 million needed to complete the exhibits and open the Museum.
I Dispute over control of Museum - Further delaying the Museum's opening, AHS
and its Foundation wrestled for control of the project. As noted in Finding I1 ( see
pages 13 through 18), the relationship between AHS and the AHS Foundation was
unstable. Further testing its relationship with the Board, the Foundation wanted
involvement in exhibit construction and planning. For example, the Foundation
contracted with the Bureau of Reclamation ( BOR) for the construction of an exhibit,
as the BOR had provided the Foundation the grant money for the exhibit. Work on
this project further diverted the Foundation's attention from fund- raising.
Additional control issues surfaced when an Intergovernmental Agreement ( IGA) to
transfer control of the Museum to the Department of Library, Archives and Public
Records was executed in 1994. According to Agency officials, members of the
Foundation were involved in arranging the agreement between the Department of
Administration ( DOA) and the Department of Library, Archives and Public Records
which was negotiated and agreed upon without AHS' knowledge. Although the
Attorney General's Office determined that DOA could not transfer AHS' responsibility
for the Museum to another agency, the existence of the agreement affected AHS'
ability to raise funds. According to AHS officials, the turmoil caused by this proposal
set back the exhibits' construction by at least one year because private donors were
hesitant to give monies they had pledged when they did not know who was in
control. Also due to these control issues, BOR suspended grant funding for its exhibit
for several months in 1994, delaying the project's completion.
Current Status
As noted earlier, AHS is preparing the exhibits for the opening scheduled in January
1996. At that time, five of the ten planned exhibits will be completed and open to the
public. According to an Agency official, the exhibits are in the final preparation stages
and will open to the public as scheduled. The remaining exhibits are expected to be
completed and full opening of the museum is anticipated in 1997.
SUNSET FACTORS
In accordance with A. R. S. 541- 2954, the Legislature should consider the following 12
factors in determining whether the Arizona Historical Society should be continued or
terminated.
1. Objective and purpose in establishing the Agency.
Although in existence since 1884, the Arizona Historical Society ( AHS) was
established as a state agency by the Legislature in 1913 to " collect, preserve,
interpret, and disseminate the history of Arizona, the West, and Northern Mexico."
AHS is also charged with designating, upon legislative approval, historical
organizations for each county in the State and contracting with designated local
societies for services to be performed for the benefit of the State. These contracts
enable AHS to ensure that history is being adequately collected, recorded, and
preserved on a local level. Statutes further specify that AHS is to publish the Journal
of Arizona History at least four times a year.
AHS has four museums across the State ( in Tucson, Flagstaff, Yuma, and Phoenix)
to serve the public and also provides assistance to researchers. AHS augments its
60 staff by using volunteers who serve in many capacities and donated over 40,000
hours of time in fiscal year 1994- 95.
2. The effectiveness with which the Agency has met its objectives and purposes
and the efficiency with which the Agency has operated.
AHS has generally been effective at meeting its objectives, though there is some
concern over its effectiveness in " preserving" history. Our consultants' review of
AHS museum collections found that AHS could improve the care of artifacts in
its possession in order to decrease the likelihood that artifacts will deteriorate ( see
Finding I, pages 5 through 11).
In addition, AHS' Board, the governing body of the Agency, needs to improve its
oversight of the Agency's museums, fund- raising efforts, and relationships with
its chapters and other affiliated groups ( see Finding 11, pages 13 through 19).
3. The extent to which the Agency has operated within the public interest.
AHS operates in the public interest by providing educational, research, and
recreational opportunities to the public. AHS also provides technical assistance to
local and county historical societies. AHS provides many of these services free of
charge to the public, as required by statute. Approximately 108,000 individuals
visited AHS museums and attended AHS programs during fiscal year 1994- 95.
4. The extent to which rules and regulations promulgated by the Agency are
consistent with the legislative mandate.
AHS has no statutory authority to promulgate rules.
5. The extent to which the Agency has encouraged input from the public before
promulgating its rules and regulations and the extent to which it has informed
the public as to its actions and their expected impact on the public.
AHS has no authority to promulgate rules.
However, the public is generally informed of Board activities. For the most part,
meetings of the Board of Directors are held in accordance with all Arizona
governmental open meeting laws.
6. The extent to which the Agency has been able to investigate and resolve
complaints that are within its jurisdiction.
This factor does not apply as the AHS has no statutory authority to investigate and
resolve complaints.
7. The extent to which the Attorney General or any other applicable agency of
state government has authority to prosecute actions under the enabling
legislation.
The AHS enabling legislation does not establish such authority.
8. The extent to which the Agency has addressed deficiencies in its enabling
statutes which prevent it from fulfilling its statutory mandate.
Our review did not identify any deficiencies in its enabling statutes which prevent
it from fulfilling its statutory mandate.
9. The extent to which changes are necessary in the Agency's laws to adequately
comply with the factors listed in the subsection.
Our review did not identify any need for changes to the AHS statutes regarding
compliance with the factors. However, we identified a need for state representation
on the Board. Currently Board members are elected by the general membership
of AHS as outlined in A. R. S. 541- 821. C. Therefore, a statutory change would be
required to mandate state- appointed members on the Board, ( see Finding 11, pages
13 through 19).
10. The extent to which termination of the Agency would significantly harm the
public health, safety, or welfare.
Termination of AHS would not significantly harm the public's safety, health, or
welfare. However, without AHS, the citizens of our State would lose a valuable
educational and recreational programming center that maintains the history of
Arizona, the West, and northern Mexico. If AHS were terminated, the museums
could be turned over to local historical societies or some other private organization.
However, because private funding covers only about 20 percent of AHS' expenses,
there currently would not be sufficient funds available to maintain staffing and
other operating needs of the museums.
Combining AHS' responsibilities with another related agency does not appear to
be a viable option. Although other state agencies, such as Library and Archives
and State Parks, appear to have overlapping responsibilities with AHS, this overlap
is slight as each Agency has its own distinct responsibilities. For example, Library
and Archives has one division that collects materials similar to those that AHS'
archives collects; however, its primary mission involves collecting historical
documents related to state and local governments. Furthermore, State Parks is
responsible for the preservation of historic properties. Although AHS oversees some
historic properties, this is not a major focus of the Agency, and it only becomes
involved with a historic property if it is threatened with destruction. Finally, all
three agencies participate jointly in the Historical Advisory Commission, which
works to coordinate ( to avoid duplication) historical preservation activities
throughout the State.
11. The extent to which the level of regulation exercised by the Agency is
appropriate and whether less stringent levels of regulation would be
appropriate.
This factor does not apply as the AHS has no regulatory authority.
The extent to which the Agency has used private contractors in the
performance of its duties and how the effective use of private contractors
could be accomplished.
AHS has made extensive use of private contractors in its Papago Park Museum
endeavor. For example, AHS has contracted out projects such as the concept plan
that gave Papago Park its theme, and interactive computer programs for exhibits.
In addition, the Agency used private contractors to write a grant to fund the Tucson
museum's successful " El Encuentro" exhibit. Finally, AHS uses contracting for
security services and accounting systems development. Given the size of its staff,
AHS would not have been able to complete these activities and functions without
contracted personnel.
Agency Response
ADMINISTRATIVE
HEADQUARTERS.
PUBLICATION
OFFICES.
Tucson
949 E. Second Street
85719
602/ 628- 5774
I MUSEUMS.
LIBRARIES.
ARCHIVES.
Flagstaff
2340 N. Fort Vallev Road
86001
6021774- 6272
Tempe
1300 N. College Avenue
Tucson
949 E. Second Street
85719
I Yuma
240 Madison Avenue
85364
602n82- 1841
Arizona Historical Society
founded by Arizona pioneers in 1884
Administrative Headquarters 949 E. Second St. Tucson AZ 85719 ( 602) 628- 5774 FAX ( 602) 628- 5695
October 17, 1995
Douglas R. Norton,
Auditor General
Auditor General's Office
291 0 North 44th Street
Phoenix, Arizona 8501 8
Dear Mr. Norton:
The following is in response to the Performance Audit and Sunset
Review draft report of October 10, 1995. 1 wish to commend your
staff for their hard work and diligence in completing their audit of the
Arizona Historical Society. I do, however, have reservations about
the section that focuses on collections management. Virtually the
entire discussion is based on the report of a single individual who, in
my opinion, has a myopic point of view. As I discussed with your
staff when consultants were being suggested, I felt there was a
need to have -- in addition to a conservator-- someone with a
broader knowledge of history museum management. This would
have provided balance to the conservator's viewpoint.
In her conclusions, the consultant states that " AHS falls
considerably short of professional expectations for quality
collections management and care and the conditions are those of a
local museum, not a state supported agency." I vehemently
disagree with this statement. Since the addition of the new wing to
our Tucson facility in the mid- I 970s we have been a leader in
collections management and care within the state. The care of
collections at AHS is equal to or better than that of other comparably
funded state agencies in Arizona and elsewhere in the country. The
only state- run historical agencies that exceed our standards for
storage and collections management have operating budgets in
excess of $ 7 million. With the possible exception of the Heard
Museum in Phoenix and the Center for Creative Photography at the
University of Arizona, the Arizona Historical Society has the best
facilities and the best collections management in Arizona. The
Arizona Department of Library and Archives, State Parks, and
Arizona State Museum have no climate- controlled facilities and their
storage conditions are at the level of AHS's Flagstaff and Yuma
operations. The report is correct when it states we need to rectify
conditions in Yuma and Flagstaff, something that is well known to
the AHS staff and board of directors. All of the state's collections
should be placed in modern and professional collection storage.
However, the fact is that close to 60,000 of the Society's more than 70,000
artifacts are housed in clean, organized, climate- controled facilities. In
addition, virtually 100% of our libraries, photographic collections, and
archives are preserved in good storage facilities.
In comparing our collections management with that of other institutions
across the nation, I know that we considerably outrank facilities such as the
Natural History Museum of Los Angeles County and the Museum of New
Mexico. Even our Flagstaff museum, with its artifacts stored under " bad"
conditions, nonetheless has its photographs and documents -- the facilities
largest single collection - well housed.
I also find fault with the report's discussion of our new museum in Tempe.
The report criticizes us for not focusing enough resources on Flagstaff,
Yuma, and Tucson, and suggests that we should be spending money
presently committed to the Tempe museum to improve our other facilities.
At the same time, the report notes the good climate controls in the Tempe
facility and commends it as a modern museum. Ten years ago, the
Society's collections in the TempelPhoenix area were housed in a historic
house similar to the one in Flagstaff. The decision was made to build a
modern new facility in central Arizona. Since then the board, staff, and
volunteer organizations have worked very hard to create the new facility in
Tempe. It is an excellent museum, with considerable capacity for skilled
collections- management practices and exhibit displays. You cannot have it
both ways -- that is, criticize AHS for not having a state- of- the- art facility in
Tucson and, at the same time, criticize us for creating a state- of- the- art
facility in Tempe. Creation of the new museum in Tempe has increased the
collections- management staff for the entire Society. The legislature has
been very generous in appropriating funds for the Tempe facility. As a
result, we have authorization for a full staff that includes five new positions
in collections management. Now, we can address similar concerns
elsewhere in the state.
We have begun working with citizens, board, and staff to plan new facilities
in Flagstaff. We hope to present a request to the legislature in the next
budget cycle. The people of Yuma have gone to extraordinary lengths to
raise money for renovating " The Molina Block." As in Flagstaff, plans are
underway to construct modern storage facilities adjacent to the historic
adobe building. The new facilities in Flagstaff and Yuma are imperative in
order to bring collections care up to the standard recommended by the
Auditor General..
I agree that environmental controls, crowding of collections, and lack of
staff are all concerns in our Tucson facility. Climate control is an issue
because of changes from dry desert to humid environment during Tucson's
summer monsoon season. We have succeeded in slowing the drastic
change in humidity, but we have not been able to eliminate it. As the
Library and Archives consultant notes, slowing the change places
considerably less stress on collections than rapid and erratic shifts.
The report is correct when it notes that we are short- staffed in Yuma,
Flagstaff, and Tucson. A photographer was transferred from Tucson and is
now in charge of collections management in Flagstaff. Again we cannot
have it both ways - we are being criticized for losing staff in Tucson and, at
the same time, for not providing enough staff in Flagstaff.
It is also true that one of our Tucson exhibits is old and outdated. I know of
no other 11 1 - year- old organization that does not have some exhibits that
need to be changed. Planning and fund raising for updating the Tucson
exhibits have been underway for some time.
I also disagree with the report's conclusion that collections management at
AHS is jeopardized by lack of board oversight. The board has been very
concerned with collections policies. In the mid- 1 980s the AHS board
adopted a whole series of policies and procedures under which collections
would be managed. The board also very correctly determined that the
major issue in the Society's development was the creation of the facility in
Tempe.
Board members are extremely concerned about Flagstaff and Yuma. The
Society has always had an intense focus on collections management. The
reports made in the 1980s all came out of the Society's desire to improve
its storage conditions. That improvement has not occurred as fast as
people would like is a factor of limited budgets and the economy. In fact, I
would suggest that our ability to create a facility in Tempe, in the midst of a
recession and years of state budget cuts, is a testament to the Society's
commitment to the history it preserves and interprets.
The staff and board of the Arizona Historical Society support the Auditor
General's recommendations for increased funding for collections care and
for the creation of a Development Officer. In fact, on several occasions we
have requested funds to expand our staff in Yuma and Flagstaff; we
continue to work on a plan that will enable us to do so. Staff and board
have completed considerable training, and we are in the process of
implementing our strategic plan. Facilities and staff are both major areas of
our planning process. AHS has one of the smallest state historical agency
budgets in the country. And it is smaller still when you realize that $ 1.2
million of the $ 3.9 million in state appropriated dollars is for the
leaselpurchase of the new historical facility in Tempe.
The Auditor General's recommendation to increase funding by $ 1 million is
too small to construct new facilities in Flagstaff and Yuma, and to complete
major renovation of the Tucson facility.
In conclusion, the Arizona Historical Society has always been concerned
about its collections and collections management. We hope that the
Auditor General's report will help us achieve our goal.
Sincerely, - #& Michael F. Weber, Ph. D.
Executive Director
Arizona Historical Society
ADMINISTRATIVE
HEADQUARTERS *
PUBLICATION
OFFICES.
Tucson
949 E. Second Street
85719
602/ 628- 5774
MUSEUMS.
LIBRARIES -
ARCHIVES.
Flagstaff
2340 N. Fort Valley Road
86001
602P74- 6272
Tempe
1300 N. College Avenue
85281
6021929- 0292
Tucson
949 E. Second Street
85719
602/ 628- 5774
Yuma
240 Madison Avenue
85364
6021782- 1841
Arizona Historical Society /
founded by Arizona pioneers in 1884
Administrative Headquarters 949 E. Second St. Tucson AZ 85719 ( 602) 628- 5774 FAX ( 602) 628- 5695
RESPONSE TO AUDITOR GENERAL'S REPORT, FINDING II
The following response deals only with portions of the Auditor General's
performance audit which concern the Arizona Historical Society's Board of Directors.
The audit's recommendations to improve the governing abilities of the board
are for the most part on point and sensible. These suggestions, however, are not
novel ideas, newly raised to the board's awareness. In fact, study and discussion have
been ongoing, and the board has taken action on many of them. For a volunteer
board, whose members frequently travel to meetings from corners of the state six to
ten hours round trip, and who receive no reimbursement or compensation for their
efforts, it has shown uncommon interest, energy, and pioneer spunk in dealing with
the difficulties of the past several years. Is every issue resolved? Of course not.
What board could make such a claim?
In 1994, the Office for Excellence in Government reviewed the structure and
management of the society and began guiding the agency toward a positive " culture
change," which the board was told would take a number of years to accomplish. The
society's committee on governance and policy studied the OEG recommendations,
and implementation began on those which were approved by the board. Because the
audit accepts OEG findings apparently without question, and because the audit
effectively ended in the spring of 1995, some accomplishments of the board have been
unfortunately overlooked.
The board, originally 40, was reduced to 30 through attrition but maintains
representation from all Arizona counties. Board training is ongoing, beginning with
a two- day retreat and several other exercises facilitated by the OEG. Recently,
several board members attended the state's training for members of boards and
commissions. During 1995, the board approved a vision statement; each committee
articulated its duties, responsibilities, and goals; a staff member began streamlining the
board policy manual; and senior staff engaged in very productive strategic planning
sessions-- all setting the stage for policy development at the board level and an agency
wide long- range plan in the very near future.
The selection process for members of the board has undergone modification.
A board member from each of the four geographic zones of the society will be
appointed by the governor, assuming approval by the legislature in its next session.
A revamped recruitment system is now in place, reaching out to every historical
organization on the society's mailing list, as well as to members of the business,
corporate, and municipal communities. Term limitation provisions are being more
strictly enforced, which will lead to renewal but also means losing institutional
memory and very valuable experience.
A word about the current board. The audit accepts the 1994 OEG finding that
the board lacks sufficient diversity, museum professionals, and those with management
experience. Looking at the board list, one will find that women, Hispanics, and local founding
families are well represented. Among board members elected in 1994 were a builder, a college
administrator, and a former director of programming for a major Washington, D. C. performing arts
complex. In November 1995, three corporate leaders are expected to join the board. Among the
current members are museum directors, school administrators, elected city officials, a former state
senator now in university administration, former diplomats, medical and legal professionals, authors,
artists, a government manager, community volunteers, and men and women who have operated
businesses and corporations. The vast majority also have direct experience with museums andlor
historical societies. The wealth of talent and ability among these amateur historians who love history
and wish to preserve it has accounted for many of the society's successes.
The question then becomes, with such a wealth of talent and ability, what stymied private
sector findraising and thus delayed the opening of the society's museum in Papago Park? Quite
simply, the failure of the society's former foundation to raise sufficient money, coupled with various
battles waged against the society for operational control of that museum. During a period of almost
two years, the board had little choice but to spend inordinate amounts of time dealing with the
constant onslaught. The board knew it, resented and regretted it, and was terribly frustrated by it.
( See " Other Pertinent Information" for details.) As soon as the society's authority over the museum
was clarified, and when the society did not receive the requested appropriated monies for a
development officer, the board approved a contract with a private find- raiser. His successful efforts
have been instrumental in making it possible for the museum to open to the public in January 1996.
The board understands that some collections in certain society facilities need improved care
and management but does not accept the view that there is " neglect of routine care of collections
agency wide." The audit holds the society to a standard that is seldom achieved in the real world ( and
nowhere in Arizona with the possible exception of the Center for Creative Photography), a standard
that is virtually unattainable except at institutions with lavish budgets. Repeated appeals for necessary
staff positions and funds to care for collections, which the society holds in trust for the state, have
been refused by the legislature. The society is hopeful that the emphasis given to this matter within
the audit will result in appropriated funds being made available.
The society is a complicated network of affiliated support groups, most of which understand
their roles and are content. However, the need to better define and task the four chapters has long
been recognized and is under review by the board even now. Because the expectations and desires
of chapter boards vary widely, and because the distinction between advice and governance has blurred
over time, the society has found that the issue will not yield to a quick or easy resolution. The society
board will continue to work toward a satisfactory delineation of chapter authority and the clarification
of roles and responsibilities for chapter boards.
The society has a complex structure and a long convoluted history-- the organization has
grown more like a western weed than a disciplined plant in an ornamental garden. It should be
remembered that less than 20 years ago, the society was simply a parochial Tucson institution,
operating a museum there and not much else. One by one, local operations came under the society
umbrella-- Central Arizona, Yuma, Flagstaff, Pine- Strawberry, Douglas. Tremendously successful
outreach programs began to educate and delight thousands of Arizona schoolchildren. Contracts with
local historical organizations for artifact curation were instituted, along with a potent field services
operation to assist those entities. Across the country, the publications division gained a well deserved
reputation for professional excellence. The exhibits division brought truly first- class displays into the
Tucson museum time aRer time. The involvement by the Rio Colorado division in the Yuma
Crossing project has brought great credit to the society.
When floods swamped the Greenlee County Historical Society museum, the society was there
to offer expert assistance. When there was a need to preserve the crumbling Hubbel Trading Post
in Wmslow, the society stepped in. When the Guevavi mission site needed to be protected, members
of the society's board assisted in negotiating necessary transfers of land. When historic locomotives
in Flagstaff and streetcars in Phoenix were threatened, society volunteers gave them new life. The
society protected the fledgling State History Convention until it now flourishes on its own. Historic
preservation workshops and regional meetings for local groups have educated hundreds of volunteers
around the state, making them powerful voices and willing hands to preserve their own history,
thereby enriching us all.
The truth is that membership on the society board in recent years has been anything but a
tranquil experience. The board has long recognized multiple pressing needs but has been constrained
by limits of time, money, and statfing. There have been the frustrations of struggling to preserve the
society as a state agency while powerful forces sought to break it apart. There have been the
hstrations of repeatedly stretching limited resources thinly in order to carry out the society's mission
statewide. That many members have continued to serve on the board under such conditions is a
credit to their dedication to history and to the state. As a board, we may not have reached perfection,
but we've made great strides. I'm proud to know the members and to have served with them.
Patricia Davis Brandt
President of the Board of Directors
Arizona Historical Society
October 18, 1995
APPENDIX A
APPENDIX A
The Office of the Auditor General contracted with Bettina Raphael and Sharlane Grant
to assist in our audit of the Arizona Historical Society. As museum preservation experts,
the two were contracted to assist us in assessing how effective AHS has been in
preserving the items entrusted to the museums. Sharlane Grant conducted a library and
archives assessment of the museum in Tucson and of the yet- to- be opened Papago Park
Museum. Bettina Raphael conducted general museum assessments of the museums in
Flagstaff, Tucson, and Yuma, and the Papago Park Museum. Listed below are their
qualifications.
I Sharlane Grant - is a conservator specializing in " books and paper." She is the
Preservation Officer of the State Historical Society of Wisconsin and previously
served as the Head of the Preservation Department of the Arizona State University
Libraries. Ms. Grant had conducted the library and archives portion of the 1989 -
Tucson museum assessment. She has conducted other assessments sponsored by
the Institute of Museum Services as well.
Bettina Raphael - is the owner/ conservator of the Southwest Conservation
Laboratory in Santa Fe, New Mexico. The Southwest Conservation Laboratory
provides general assessments, condition surveys of artifacts, storage planning,
environmental monitoring, and long- range conservation planning. Previously, Ms.
Raphael was the Senior Artifact Conservator at the Museum of New Mexico from
1984 to 1992 and has over 20 years' experience in museum conservation. Ms.
Raphael was recommended by several individuals within the Arizona museum
community.
Copies of the consultants' reports are available for review at the Office of the Auditor
General.
a- i
Prescott Historical Society
INTRODUCTION AND BACKGROUND
The Office of the Auditor General has conducted a performance audit and sunset review
of the Prescott Historical Society pursuant to a May 5, 1993, resolution of the Joint
Legislative Audit Committee. This audit is conducted under the authority vested in the
Auditor General by A. R. S. 5541- 2951 through 41- 2957.
History and Purpose
The Prescott Historical Society ( PHs) was established as a state agency in 1964 to operate
the Sharlot Hall Museum which was founded in 1927. PHs is governed by a 15- member
board that is elected from the membership of the Society ( approximately 800 individuals
are members). The responsibilities of PHs include preserving, maintaining, and
perpetuating the gubernatorial mansion, Sharlot Hall Museum, and the historical
collections. The Museum also collects historical items, provides educational programs,
and maintains a research library. It is mandated to keep the collections and historical
materials accessible to the public free of charge. In fiscal year 1994- 95, the Museum
served over 69,000 visitors.
Although the primary function of PHs is similar to that of the Arizona Historical Society
( AHS), to collect and preserve Arizona history, PHs is a separate agency. The idea of
combining the two agencies has been addressed in recent years. For example, in 1988,
the Arizona Cost Efficiency Commission consultant's report recommended that all
historical activities of several agencies, including AHS and PHs, be merged to gain
operating efficiencies and save almost $ 120,000 per year.( 1) However, the Joint Legislative
Budget Committee ( JLBC) staff also studied the issue as part of the fiscal year 1991- 92
budget process and concluded that " little, if any, savings would result from such a
move." According to JLBC staff, they found no staff positions that could be eliminated
if PHs and AHS were combined. Further, they estimated staff salaries at PHs would
have to be increased to equalize them with AHS staff.
Budget and Personnel
Prescott Historical Society receives both state appropriations and private funding. State
appropriations account for almost 70 percent of the Society's funding and are used for
staff salaries, utilities, and operating expenses. In fiscal year 1994- 95, PHs was
( I) The Commission, appointed by a former governor, focused on evaluating the operations and
administration of all state agencies to improve efficiency and effectiveness and identify opportunities
to eliminate waste or reduce costs.
27
appropriated approximately $ 536,000. Private funding is provided by donations,
membership sales, gift shop sales, and other sources and is directed toward Museum
exhibits and programs. In fiscal year 1994- 95, PHs raised an estimated $ 240,000 from
private sources accounting for almost one- third of total expenditures.
PHs is authorized 16 FTE staff who work in the collections, archives, education, and
support departments. Its staff include a curator, an archivist, a designer, and clerical
and maintenance staff. In addition, PHs utilizes the service of volunteers who, in 1994- 95,
contributed over 25,000 additional hours of service at the Museum in various capacities,
such as working in the gift shop, guiding tours and answering visitor questions,
developing photos, working at special events, and assisting with exhibit, archive, and
collection work.
Audit Scope
During the audit, we reviewed the Museum facilities and functions and found no
significant problems. In fact, a 1991 review conducted by the American Association of
Museums ( AAM), an accrediting body, found the Society's collection storage areas to
be in " immaculate condition" and that there were clear, well- written procedures for the
care of the collections. Also, the committee found the exhibits areas were " well thought
out" and well maintained. As a result of the review, the Museum received full
accreditation in 1992.
PHs has further managed to effect improvements in its operations since the AAM study.
For example, PHs has modernized its security system, climate control system, and
storage methods to even better protect the collection. In addition, PHs is working to
enhance its exhibits by constructing new exhibits and by adding interactive components
to add more educational value.
In reviewing the Board's activities, we did note a few areas needing improvement.
However, the deficiencies noted were limited and did not appear to significantly impact
the ability of the Agency to fulfill its mission. Therefore, instead of developing audit
findings, areas for improvement are addressed in the statutorily mandated Sunset Factors
( see pages 29 through 32).
The audit was conducted in accordance with government auditing standards.
The Auditor General and staff express appreciation to the President of the Board of
Trustees, Board members, and the staff of the Prescott Historical Society for their
cooperation and assistance during the audit.
SUNSET FACTORS
In accordance with A. R. S. 541- 2954, the Legislature should consider the following 12
factors in determining whether the Prescott Historical Society should be continued or
terminated.
1. Objective and purpose in establishing the Agency.
The Prescott Historical Society ( PHs) was established by the Legislature in 1964
to " preserve, maintain and perpetuate the gubernatorial mansion, the Sharlot Hall
Museum, and the historical collections contained therein." The statute also directs
PHs to procure, protect, preserve, and display museum items pertaining to the
history of Arizona and the West. While PHs collects and holds in trust historical
items representing all of Arizona's history, its particular emphasis is on the Central
Mountain Region of Arizona.
2. The effectiveness with which the Agency has met its objectives and purposes
and the efficiency with which the Agency has operated.
PHs has generally been effective at meeting its objectives of preserving its historical
collections and providing a wide range of museum services for the people of
Arizona. In 1992, the Museum received full accreditation from the American
Association of Museums ( AAM), a nationally recognized museum accreditation
body. As noted earlier, the accreditation committee found the collections and
exhibits areas to be " well thought out," and immaculately maintained.
PHs has operated efficiently by maintaining its operations and serving a growing
population though it has not increased its staffing level in 15 years. It has been able
to do so, in part, by increasing private donations, utilizing volunteers, and obtaining
private grants for conservation and other projects.
However, the Board could improve its effectiveness in overseeing the Agency in
three ways.
First, to increase its effectiveness in guiding the agency, the Board should ensure
a long- range plan is developed for PHs. Although PHs developed a long- range
plan for facility additions and improvements in 1991, there has been no strategic
plan for the Agency in recent years. In fact, during its accreditation process, the
AAM reviewers noted the need for developing a long- range plan " to ensure a
thriving Sharlot Hall Museum entering the 21st century." Further, based on our
review of 1993 and 1994 Board minutes, it does not appear that the Board has been
engaged in any long- range planning nor made any major policy decisions during
those two years. According to literature on Board operations, a plan is needed to
define the expected long- term results for the Agency and to provide a tool for the
Board to measure performance. Further, development of a plan will give direction
to the Agency's activities and provide a framework for Board decision making. To
fulfill its role, the literature suggests that the board must be involved in planning
and insist that it is done; however, Agency staff, as the experts, should be
responsible for creating the plan.
Second, to bring more community leaders and more fund- raising and museum
expertise to the Board, the Board should improve board member recruitment.
According to literature, the current recruitment method, where prospective board
members are recommended by current members, can result in a homogenous board.
When recruiting, the Board should examine the profile of its membership and seek
new members with needed skills or expertise. Achieving a greater diversity on the
Board will provide more broad- based support and new ideas for the Agency.
Finally, the Board should assess its own performance periodically. According to
literature, a governing board should ensure it is working effectively by evaluating
its performance on items such as: long- term planning, organization, bylaws,
membership composition, preparation for meetings, and resource development.
The extent to which the Agency has operated within the public interest.
PHs operates in the public interest by providing educational, research, and
recreational opportunities to the public free of charge as well as by aiding in
preserving the history of the State. PHs provides volunteer tour guides for school
groups and is currently involved in a fourth- grade curriculum project. In addition,
the archives and collections are used by graduate students, scholars, filmmakers,
and other historians. In fiscal year 1994- 95, over 69,000 individuals participated in
museum activities which include daily visitation, guided tours, lectures, and special
events.
However, we identified one issue related to operating within the public interest
that should be addressed - state representation on the Board. PHs has historically
received a large portion of its budget ( approximately 70 percent) from state
appropriations. However, the State has no representation on the Agency's governing
board. The current PHs Board is made up entirely of Board members elected by
PHs general membership, as set forth in statute. We did not determine the
appropriate mix of state and private board members; however, we believe that state
representation is needed on the PHs Board.
4. The extent to which rules and regulations promulgated by the Agency are
consistent with the legislative mandate.
Although PHs has not promulgated rules and regulations as mandated by statute,
it has established policies that sufficiently fulfill the mandates.
5. The extent to which the Agency has encouraged input from the public before
promulgating its rules and regulations and the extent to which it has informed
the public as to its actions and their expected impact on the public.
While meetings have been open to the public, PHs failed to comply with Open
Meeting Law requirements regarding proper notification of Board meetings.
Specifically, PHs had not provided a statement to the Secretary of State on where
the meeting notices would be posted, as required by A. R. S. 538- 431.02. PHs staff
were not aware of this requirement and after this was brought to their attention,
they filed the required statement on July 25, 1995.
6. The extent to which the Agency has been able to investigate and resolve
complaints that are within its jurisdiction.
This factor does not apply as PHs has no statutory authority to investigate and
resolve complaints.
7. The extent to which the Attorney General or any other applicable agency of
state government has authority to prosecute actions under the enabling
legislation.
The PHs enabling legislation does not establish such authority.
8. The extent to which the Agency has addressed deficiencies in its enabling
statutes which prevent it from fulfilling its statutory mandate.
Our review did not identify any deficiencies in its enabling statutes which prevent
it from fulfilling its statutory mandate.
9. The extent to which changes are necessary in the Agency's laws to adequately
comply with the factors listed in the subsection.
Our review did not identify any need for changes to the PHs statutes regarding
compliance with the factors. However, Sunset Factor three discusses the need for
state representation on the Board. Since statute currently sets out election by the
society membership as the Board member selection method, a statutory change
would be required to allow state- appointed Board members.
10. The extent to which termination of the Agency would significantly harm the
public health, safety, or welfare.
Termination of PHs would not significantly harm the public's safety or health.
However, without PHs, Prescott and other Arizona communities would lose a
central resource, educational, and recreational programming center that maintains
the history of the Central Mountain Region, Arizona, and the West.
If PHs were terminated, the Museum could be turned over to the private historical
society that helps support PHs. However, as noted earlier, the private funding
covers only 30 percent of PHs' operating expenses. Therefore, there would be
insufficient funds available to maintain staffing and other operating needs of the
Museum.
Alternatively, Arizona Historical Society ( AHS) could possibly absorb PHs
responsibilities, if it were terminated. However, as noted earlier, the Joint Legislative
Budget Committee ( JLBC) staff determined there would be no cost savings gained
from such a move. In fact, JLBC staff estimate that merging PHs with AHS could
prove more costly, as PHs staff salaries would need to be increased to match those
of AHS. Further, given our concerns regarding AHS' inability to properly support
its own branch museums, we question its ability to adequately support another
museum.
11. The extent to which the level of regulation exercised by the Agency is
appropriate and whether less stringent levels of regulation would be
appropriate.
This factor does not apply as the PHs has no regulatory authority.
12. The extent to which the Agency has used private contractors in the
performance of its duties and how the effective use of private contractors
could be accomplished.
PHs does not use private contractors on a regular basis. On occasion PHs contracts
with museum conservation specialists to perform highly specialized conservation
work, such as the repair of damaged clothing artifacts and other historical items.
Agency Response
Sharlot Hall
October 18, 1995 Museum 415 West Gurley Street
Prescott. Arizona 86301
State of Arizona
Office of the Auditor General
Douglas K. Norton, Auditor General
2910 North 44th Street, Suite 410
Phoenix, Arizona 85018
Dear Mr. Norton:
The Prescott Historical Society is in receipt of the revised preliminary report draft of our
performance audit, and your cover letter of October 10, 1995.
I appreciate the attentiveness and courtesies of your staff. My meeting at your Phoenix
office was very productive, and Maureen Tonn has been especially helpful. This
museum's Board of Directors is pleased that our institution receives such favorable
comments.
This final response to the report, as requested in your cover letter, will address each
Sunset Factor in turn:
1. Objective nrzd purpose irl estnblishirlg the Agerzcy.
It is stated that PHs's " particular emphasis is on the Central Mountain Region of
Arizona." That is true, but it is a challenge to clearly define that region geologically,
biologically, and as per prehistoric and historic human settlement patterns. Our on-going
work is to develop parameters that clarify the extent of the Central Mountain
Region. This is seen as a positive challenge, and an opportunity for collaboration
with other institutions, as well as an opportunity for public education.
2. The effectiverless ~ i ~ iutIhhi ch the Agerzcy has 11zet its objectives n~ zdp LLrposes R I Zt~ he efficiency
zoith zi~ hich the Ageilcy hns opernted.
The report states " the Board could improve its effectiveness in three ways:"
a. " ensure a long range plan is developed." New management at the executive
and Board levels at Sharlot Hall are in full agreement with this observation, and have
embarked on the process of developing an inclusive long- range plan. The recently
appointed museum director, Richard Sims, identified the need for planning early on,
and brings that experience from other museums. Board President Earl Swansen, in
a memo 6 the ~ xeiutiveC ommittee dated September 8,1995, notes that " the sure way
Prescott Historical Society ( 602) 445- 3122
to end up in the dust bin of history is to go about our day- to- day business with no
plans for future development. This is especially true of not- for- profit organizations
with volunteer boards of trustees." Submittal of the recent Strategic Plan requested
by OSPBIOEG serves as a useful prelude to full- scale long- term planning.
b. " improve board member recruitment." On September 6, a highly productive
meeting among the Board's Nominating Committee and the Executive Committee,
including the new museum director, clarified that a readiness exists to break old
patterns of recruitment and to reach out with more focused efforts at recruitment of
diverse community leaders in business, education, and philanthropy.
c. " the board should assess its own performance periodically." We agree, and
are working in appropriate committees to schedule retreats and workshops that
promote reflection and assessment. The Board and museum director attended the
Board Member Training hosted by OEG on September 27 in Phoenix.
3. The exterzt to zuhich the Agerzcy has operated zuithirl the p~ lblic interest.
The report states that " state representation is needed on the PHs board." That
suggestion seems tempered somewhat by language in the Summary section, where
it is stated that " although we did note that the Board needs improvement in a few
areas, these deficiencies did not appear to significantly impact the ability of the
Agency to fulfill its mission."
The PHs Board is interested in continuing this discussion of state- or Governor-appointed
board member( s). Many community leaders on the Board regard their
presence now as " state representation" in the full citizenship sense of the term, in the
sense of responsible taxpayers accepting fiduciary responsibility for assignment of
general tax revenues. Other Board members are willing to explore the process by
which a slate of one- to- three locally nominated people would be appointed at the
state or Governor level to fill one Board vacancy. It is understood that most state
Boards do have some measure of state appointment, although many of those boards
have regulatory authority, which PHs does not.
The Auditor General's own survey of other state historical agencies provided
some informative data. For instance, of the 44 states surveyed, 27 historical agencies
have at least 50% state funding, and 16 of that 27 have some measure of state or
Governor appointment. That survey also revealed no clear relationship between level
of state appropriations and level of state appointments.
The PHs Board at its most recent board meeting ( October 17) put forth a
willingness to cautiously explore the suggestion of state representation, and
authorized the Museum Director to proceed with general discussions with the
appropriate parties.
4. The extent to which rules and regtilntions promulgated by the Agency are consistent with the
legislative mandate.
As the report acknowledges, there are board- established policies that are
synonymous with " rules and regulations."
5. The extent to zuhich the Agerzcy has encouraged inptit from the public before promulgati~ zg its
rttles and regtilatio~ zs and the extent to zuhich it has informed the ptiblic as to its actions and
their expected impact on the public.
Indeed, we were not aware of the required communication with the Secretary
of State. That has been corrected.
6. The exterzt to zohich the Agency has been able to irzvestignte and resolve complaints that are
zoithin its j~ irisdictio~ l.
Not applicable, as stated.
7. The extent to zuhich the Attonzey Gelzeral or any other applicable agency of state government
has nttthority to prosecute actions ttnder the ennblilzg legislation.
As stated. No comment.
8. The exterzt to zohich the Agerzcy has addressed deficierzcies irz its enabling stattites which
preverzt it fro~ if~ tlfillirzg its statutory nzarzdate.
As stated. No comment.
9. The exterzt to zuhich cha~ zges are necessary in the Agency's laws to adeqtiately comply with
the factors listed in the sttbsection.
The draft report states that " a statutory change would be required to allow
state- appointed Board members." PHs desires further discussion with the
appropriate state agencies or legislative committees to better understand the necessity
of effecting a statutory change.
10. The exterzt to zohich terrrlirzatiorz of the Agency zuo~ tlds ig~ zijicantlyh arm the ptiblic health,
safety, or welfare.
We appreciate the recognition as " a central resource, educational, and
recreational programming center." PHs and the Sharlot Hall Museum strive diligently
to fulfill that mission. There exists a firm resolve on the part of the Board and the
Museum Director that PHs retain its independence from AHS, for operational and
logistical reasons beyond the cost- effective business approach put forth by JLBC.
11. The extent to zuhich terrrziizntio/ z of the Agerzcy zootild sig~ zificalztly hnrnz the ptiblic health,
safety, or zoelfnre.
As stated. No comment.
12. The extent to zuhich the Agency has tised private corztrnctors iiz the performa~ zce of its duties
and how the effective use of private corztrnctors cotild be nccornplished.
As stated. No comment.
We anticipate a successful conclusion to the performance audit at the November 21st
meeting of the Committee of Reference. Thank you for the constructive insights you
have provided concerning the operations of Prescott Historical Society/ Sharlot Hall
Museum.
Sincerely,
Richard S. Sims
Director